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<title>Techdirt. Stories filed under &quot;music&quot;</title>
<description>Easily digestible tech news...</description>
<link>http://www.techdirt.com/</link>
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<image><title>Techdirt. Stories filed under &quot;music&quot;</title><url>http://www.techdirt.com/images/td-88x31.gif</url><link>http://www.techdirt.com/</link></image>
<item>
<pubDate>Fri, 12 Apr 2013 07:43:18 PDT</pubDate>
<title>New Book On The History Of Music, Copyright And Piracy Shows How Copyright Tends To Hold Back Music</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130410/07134322658/new-book-history-music-copyright-piracy-shows-how-copyright-tends-to-hold-back-music.shtml</link>
<guid>http://www.techdirt.com/articles/20130410/07134322658/new-book-history-music-copyright-piracy-shows-how-copyright-tends-to-hold-back-music.shtml</guid>
<description><![CDATA[ Reason is running a <a href="http://reason.com/archives/2013/04/09/the-long-fruitful-history-of-music-pirac" target="_blank">very interesting review</a> of a new book by Alex Sayf Cummings, called <a href="http://www.amazon.com/gp/product/0199858225/ref=as_li_ss_tl?ie=UTF8&#038;camp=1789&#038;creative=390957&#038;creativeASIN=0199858225&#038;linkCode=as2&#038;tag=techdirtcom-20"><i>Democracy of Sound: Music Piracy and the Remaking of American Copyright in the Twentieth Century</i></a>.  It reiterates many of the points that we've made before about music and copyright, but with a strong historical basis, highlighting how these issues are not new.  In fact, it reiterates how Congress was quite concerned that putting copyright on recordings was a very dangerous mistake:
<blockquote><i>
The fact that music is widely seen as "intellectual property" is itself a product of that struggle. For a long time, the U.S. worked to separate intellect and property. In the early 1900s when copyright issues around sound recording were first being negotiated, the law "protected the tangible expression of an idea and not the idea itself," Cummings writes. Lawmakers struggled to figure out where sound recordings fit into that framework. Was the recording a tangible expression of a new idea? Or was it simply a copy of an idea? Congress initially leaned towards the second interpretation&#8212;and, as a result, sound recordings could not be copyrighted. For decades, pirates had to be prosecuted under common law or statutory bans on unfair competition. It was only in the 1970s that copyright was extended to sound recordings.
</i></blockquote>
As the book notes, lawmakers were quite worried that extending copyright to sound recordings would stifle creativity -- and, as the book shows, their fears were not out of line:
<blockquote><i>
Unrestricted property rights in music, they feared, could create monopolies, harm consumers, and throttle innovation and competition This was the rationale, in part, for giving songwriters only limited rights over the use of their songs.  Under the law, licensing was compulsory: Songwriters received a fee from recordings, but could not refuse the use of their work. You can thank this system for America's long history of cover versions. Indeed, in the years before it was common to play records on the radio, these remakes were central to the record labels' business model: Re-recordings of hit songs by different artists were a major source of income. <b>A whole subset of artistic production and commerce, in other words, was enabled not by the expansion but by the limitation of intellectual property rights.</b>
<br /><br />
This apparent contradiction surfaces again and again throughout Cummings' book. <b>Property rights in music are supposed to promote creativity, but often they seem to either be irrelevant, or else actively retard it.</b>
</i></blockquote>
You can read the full review over at Reason, but the full book sounds like a must read in the collection of books that highlight how damaging copyright has been to creativity over the years.<br /><br /><a href="http://www.techdirt.com/articles/20130410/07134322658/new-book-history-music-copyright-piracy-shows-how-copyright-tends-to-hold-back-music.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130410/07134322658/new-book-history-music-copyright-piracy-shows-how-copyright-tends-to-hold-back-music.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130410/07134322658/new-book-history-music-copyright-piracy-shows-how-copyright-tends-to-hold-back-music.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>but-of-course</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130410/07134322658</wfw:commentRss>
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<pubDate>Thu, 11 Apr 2013 12:47:46 PDT</pubDate>
<title>Oh Look, The Number Of People Employed In The Movie And Music Recording Business Just Hit An All Time High</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130411/11122622680/oh-look-number-people-employed-movie-music-recording-business-just-hit-all-time-high.shtml</link>
<guid>http://www.techdirt.com/articles/20130411/11122622680/oh-look-number-people-employed-movie-music-recording-business-just-hit-all-time-high.shtml</guid>
<description><![CDATA[ The common refrain coming out of the MPAA and RIAA over the past few years has really focused on "jobs, jobs, jobs!"  This is a message that often works with Congress.  If you can convince Congress that "jobs" are at risk, they go scrambling to protect those jobs, even if the economy would be much better off with obsolete jobs going away, and better jobs taking their place.  That said, the MPAA and RIAA have a long history of making up <a href="http://www.techdirt.com/articles/20120911/01015620336/mpaa-sends-five-key-propaganda-points-to-politicians.shtml">ridiculous</a> claims about the number of people employed in their industries, as well as the number of supposed <a href="http://www.techdirt.com/articles/20121008/11012620639/riaas-bogus-math-strikes-again-claimed-41-decline-musicians-not-even-close-to-true.shtml">"lost jobs."</a>  So it's <i>rather noteworthy</i> to see that the good folks over at ZeroHedge have pointed out that, according to the Bureau of Labor Statistics (BLS), <a href="http://www.zerohedge.com/news/2013-04-11/we-have-discovered-boom-record-jobs-those-who-make-stuff" target="_blank">jobs in the motion picture and sound recording industries hit an all time high in December</a>.
<center>
<a href="http://imgur.com/sHies5L"><img src="http://i.imgur.com/sHies5L.jpg" width=560 /></a>
</center>
Funny that.  I thought that they were losing jobs like crazy, and that without SOPA those jobs would just keep disappearing.  Hmm...<br /><br /><a href="http://www.techdirt.com/articles/20130411/11122622680/oh-look-number-people-employed-movie-music-recording-business-just-hit-all-time-high.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130411/11122622680/oh-look-number-people-employed-movie-music-recording-business-just-hit-all-time-high.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130411/11122622680/oh-look-number-people-employed-movie-music-recording-business-just-hit-all-time-high.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>but-jobs-jobs-jobs!</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130411/11122622680</wfw:commentRss>
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<pubDate>Thu, 4 Apr 2013 13:10:54 PDT</pubDate>
<title>Macklemore Explains Why Not Being On A Label Helped Him Succeed</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/casestudies/articles/20130401/03115322523/macklemore-explains-why-not-being-label-helped-him-succeed.shtml</link>
<guid>http://www.techdirt.com/blog/casestudies/articles/20130401/03115322523/macklemore-explains-why-not-being-label-helped-him-succeed.shtml</guid>
<description><![CDATA[ Unless you've been <i>totally</i> under a pop-culture/music rock for the past few months, you've probably heard of Macklemore and his <a href="http://www.youtube.com/watch?v=QK8mJJJvaes" target="_blank">hit song (and video) <i>Thrift Shop</i></a>.  Now at well over 200 million views, the song itself has been at the top of the charts and has sold over 4 million copies.  In case you somehow <i>have</i> missed it, or in case you just want to watch it again, here's the video:
<center>
<iframe width="560" height="315" src="http://www.youtube.com/embed/QK8mJJJvaes" frameborder="0" allowfullscreen></iframe>
</center>
The song itself was released last year, and built up a lot of buzz throughout the fall, but completely <i>exploded</i> at the beginning of this year.  While I became aware of the song a while back, I didn't realize until recently that Macklemore is actually yet another story of a totally independent artist who found success not by signing with a label and having them throw a ton of money into promoting him, but by carving his own independent path (and using YouTube to connect with fans).  In many ways, his story reminds me of <a href="http://www.techdirt.com/blog/casestudies/articles/20130324/01115322434/musician-alex-day-explains-how-he-beat-justin-timberlake-charts-basically-just-via-youtube.shtml">Alex Day's</a>.
<br /><br />
A few weeks ago, Macklemore <a href="http://www.nerdist.com/2013/03/nerdist-podcast-macklemore/" target="_blank">sat down with Chris Hardwick on the Nerdist podcast</a> and it's great.  Beyond some interesting discussions about sudden fame (and then doing laundry in the communal laundry room of your apartment building days after appearing on SNL), he does talk a little about being a successful musician without a label.  Chris asks him about the no label part and mentions what a great story it is:
<blockquote><i>
<b>Chris</b>: To see you and Ryan Lewis come out of Seattle just making stuff you like making, with no label, and oh you're at the top of the charts, and all these people are talking about the song... that's just a great story.
<br /><br />
<b>Macklemore</b>: Yeah, I appreciate it.  It is a very cool story.  It's what you always hope for in terms of picking the independent path.  It's cool to see that that's been a focal point.  It's not just "Thrift Shop"; it's this kind of do-it-yourself attitude behind the music we've made -- that is also within the midst of this thrift shop song.  That these two dudes chose to go independently, to turn down the labels.  That the music industry is changing.  That it's evolving.  And to be at any sort of place where we're at the forefront of that, at the moment, is exciting.
<br /><br />
<b>Chris</b>: It's so inspiring to so many young people who maybe -- and I think people are more and more used to the fact that they can just make stuff in their bedrooms and it can turn out to be huge.  But every time it happens, it's that much more inspiring to a younger generation of people who go... 'there's no excuse any more to not go out and make stuff that you want.'
<br /><br />
<b>Macklemore</b>: Absolutely.  And that's what we watched people that came before us that have done it independently, whether it's Sub Pop, or whether it's... Mac Miller did it independently.  And he had every major label hollering at him with huge seven figure offers and turned it down and still went number one on Billboard.  There's examples of it that came before us, that had us say 'I think that it can work -- I'm not sure that it can work."  But, at the end of the day, what's most important, and creative control is number one for Ryan and I.  It's a no brainer.
<br /><br />
<b>Chris</b> I'm sure you've been approached a million times at this point, but you still don't want the infrastructure of a label?
<br /><br />
<b>Macklemore</b>: Yeah, there's no reason to do it.  <b>With the power of the internet and with the real personal relationship that you can have via social media with your fans</b>... I mean everyone talks about MTV and the music industry, and how MTV doesn't play videos any more -- YouTube has obviously completely replaced that.  It doesn't matter that MTV doesn't play videos.  <b>It matters that we have YouTube and that has been our greatest resource in terms of connecting, having our identity, creating a brand, showing the world who we are via YouTube.  That has been our label</b>.  Labels will go in and spend a million dollar or hundreds of thousands of dollars and try to "brand" these artists and they have no idea how to do it.  There's no authenticity.  They're trying to follow a formula that's dead.  And Ryan and I, out of anything, that we're good at making music, but we're great at branding.  We're great at figuring out what our target audience is.  How we're going to reach them and how we're going to do that in a way that's real and true to who we are as people.  Because that's where the substance is.  That's where the people actually feel the real connection.
<br /><br />
And labels don't have that.
<br /><br />
So you sign up for a label.  There's not some magic button they're now going to push and it means that people are going to like who you are.  Or that they're identify with your vision or your songs.  It actually comes from sitting down, staring at a piece of paper for months or years on end, trying to figure out who you are as a person, and hoping that it comes through in the end.  But a label's not going to do that for you.
</i></blockquote>
Uh huh.  Once again, it makes you wonder what people are thinking when they claim that YouTube is putting artists <a href="http://www.techdirt.com/articles/20130220/03360022036/dead-kennedys-guitarist-joins-crusade-against-ad-networks-youtube-despite-understanding-neither.shtml">out of work</a>.
<br /><br />
The whole episode is worth listening to as Macklemore has a great perspective on all of this, and it's interesting to hear him discuss the oddity of his sudden increase in fame and how he's dealing with it, without letting it go to his head.  But considering how often we've had similar discussions about artists who choose to go independent, I thought some would enjoy that particular snippet especially.<br /><br /><a href="http://www.techdirt.com/blog/casestudies/articles/20130401/03115322523/macklemore-explains-why-not-being-label-helped-him-succeed.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/casestudies/articles/20130401/03115322523/macklemore-explains-why-not-being-label-helped-him-succeed.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/casestudies/articles/20130401/03115322523/macklemore-explains-why-not-being-label-helped-him-succeed.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>looking-for-a-come-up</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130401/03115322523</wfw:commentRss>
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<pubDate>Tue, 2 Apr 2013 07:57:11 PDT</pubDate>
<title>UK Music Licensing Agency Says You Can't Use Its Music In Your Podcast Without First Purchasing A License It Doesn't Even Offer</title>
<dc:creator>Tim Cushing</dc:creator>
<link>http://www.techdirt.com/articles/20130401/03505922530/another-podcast-forced-offline-due-to-lack-non-existant-licenses.shtml</link>
<guid>http://www.techdirt.com/articles/20130401/03505922530/another-podcast-forced-offline-due-to-lack-non-existant-licenses.shtml</guid>
<description><![CDATA[ The nightmarishly intertwining world of music licensing is a popular topic here, especially considering the past outlandish actions of various performance rights agencies. On top of this, there's the multitude of <i>different</i> licenses, each one applying <i>specifically</i> to certain formats or outlets. If it's streaming on Youtube, it needs x license and y license. If it's streaming at Spotify, it needs x license and <i>z</i> license. If it's a radio station simulcast at the station's website, license x, y <i>and</i> z are needed, along with license <i>aa</i>. And so on.
<br /><br />
Podcasters in the UK are running into licensing problems when attempting to clear music for their broadcasts, as <a href="http://www.techdirt.com/blog/?company=ppl" target="_blank">PPL</a> (who covers performance rights for recorded music, like SoundExchange in the US) is causing problems.  PPL has a  <a href="http://www.techdirt.com/articles/20111018/12124316405/hardware-store-that-doesnt-play-any-music-has-to-fight-off-collection-society-demanding-license-fee.shtml" target="_blank">history</a> of questionable over enforcement, and they just can't let up, apparently. Phil Satterly sends in this rather sad story of a long-running Progressive Rock podcast (DRRP Radio) <a href="http://www.dprp.net/wp/?p=8923" target="_blank">that is going "off the air" thanks to PPL's thoroughly impossible demands</a>.
<blockquote>
<i>Launched 18 months ago, we've produced 83 shows that have been downloaded over 30,000 times. We've covered bands from every type of prog. We've done special features on independent labels and festivals plus interviews with the likes of Clive Nolan, Steven Wilson, Gazpacho, Steve Hogarth, Riverside, Sean Filkins, Mystery and Godsticks. We have regular listeners from as far away as New Zealand, Singapore, Canada, Cuba and The Shetland Isles!</i>
<br /><br />
<i>Unfortunately three weeks ago our service provider stopped enabling downloads of the shows. The move followed pressure from the PPL &ndash; the organisation in the UK which provides broadcast licences for the recording copyright holder (i.e. record companies).</i></blockquote>
PPL is doing what collective rights organizations do best: shut down as many artistic outlets as possible. The organization is looking for a payout, but can't even be bothered to let people pay them, as Andy Read (one of the podcast hosts) points out.
<blockquote>
<i>Music licensing is a complex issue and it took quite some find to find a way to legally do DPRP Radio in the first place. We have a broadcast licence, we have a streaming licence and we have a podcast licence for the PRS &ndash; the body representing the songwriters. We do not have a podcast licence for the PPL who are now threatening legal action against podcast providers. <b>We would happily buy a podcast licence from them&hellip; but they do not offer one!</b></i></blockquote>
DRRP isn't the only podcast being asked to do the impossible by PPL. <a href="http://ukfolkmusic.co.uk/magazine/podcasting-perils/" target="_blank">The UK Folk Music podcast host quotes the PPL website's wording</a> on the broadcast licensing it <i>does</i> offer.
<blockquote>
<i>As a broadcaster you would have to obtain permission from potentially thousands of record companies before being able to play the recorded music &ndash; a PPL licence gives you this permission and allows you to play virtually all recorded music readily available in the UK simply, quickly and legally. PPL then passes these licence fees, less our running costs, onto the performers and rights holders, similar to royalties.</i></blockquote>
Handy, I guess, except that PPL does not offer a license <i>specifically</i> for podcasting. Podcasters need a very limited license if using PPL's music because the podcasts are able to be downloaded and stored. This distinguishes them (and moves them into another area of copyright protection) from radio broadcasts or other streaming services whose offerings are transient. (Not that these <i>can't</i> be "trapped/downloaded." Anyone remember cassette tapes? Yeah, same thing. Only with software.)
<br /><br />
PPL's lack of a podcasting license punts the ball back to podcasters and other music bloggers. If they can't get a blanket license, they'll have to do it the hard way: "<i>obtain permission from potentially thousands of record companies before being able to play the recorded music</i>."
<br /><br />
Obviously, this is an impossibility. And for those of you saying clever stuff like "just use original music by artists not represented by this agency?" Well, you obviously haven't been paying attention. Rights groups like PPL and PRS will still try to collect from you. In their minds, <i>no one</i> plays music <i>anywhere</i> (not even in their <a href="http://www.techdirt.com/articles/20111018/12124316405/hardware-store-that-doesnt-play-any-music-has-to-fight-off-collection-society-demanding-license-fee.shtml" target="_blank">hardware store</a>/ <a href="http://www.techdirt.com/articles/20100319/1105388633.shtml" target="_blank">hotel room</a>) without playing a bunch of their stuff. It's a self-serving distortion of reality.
<br /><br />
And for those hoping the artists that split from PPL to form their own rights group (EOS) will result in a brighter, smoother future for all concerned? You can pretty much kiss that rosy picture goodbye. EOS has already attempted to <a href="http://www.techdirt.com/articles/20130102/16241921552/welsh-radio-station-forced-to-play-classical-music-english-songs-after-royalty-talks-stall.shtml" target="_blank">shutter a few radio stations</a>. The end result is another venue for artist exposure being shut down by the "white knights" of the artistic community. These agencies don't <i>really</i> care about the artists on their roster. They just want to find a way to insert themselves, hands out, between the artists and their supporters.<br /><br /><a href="http://www.techdirt.com/articles/20130401/03505922530/another-podcast-forced-offline-due-to-lack-non-existant-licenses.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130401/03505922530/another-podcast-forced-offline-due-to-lack-non-existant-licenses.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130401/03505922530/another-podcast-forced-offline-due-to-lack-non-existant-licenses.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>pretty-much-like-the-movie-'Brazil,'-only-with-stylish-electronics</slash:department>
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<pubDate>Mon, 25 Mar 2013 11:53:55 PDT</pubDate>
<title>Musician Alex Day Explains How He Beat Justin Timberlake In The Charts Basically Just Via YouTube</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/casestudies/articles/20130324/01115322434/musician-alex-day-explains-how-he-beat-justin-timberlake-charts-basically-just-via-youtube.shtml</link>
<guid>http://www.techdirt.com/blog/casestudies/articles/20130324/01115322434/musician-alex-day-explains-how-he-beat-justin-timberlake-charts-basically-just-via-youtube.shtml</guid>
<description><![CDATA[ Last summer, we wrote about UK musician Alex Day, creator of a number of very catchy tunes (seriously <a href="http://alexdaymusic.com/music" target="_blank">take a listen</a>), and how he sold half a million songs by <a href="http://www.techdirt.com/blog/casestudies/articles/20120721/16471919785/alex-day-sells-half-million-songs-breaking-all-rules.shtml">breaking all the "rules"</a> that those from the old recording industry insist are true.  You can read that article for the details, but the short version is that he has no label, relies pretty much entirely on YouTube, he encourages fans to use his his music as much as possible and he's regularly releasing new songs.  Recently, he released his latest album in the UK the same day that music industry superstar Justin Timberlake did, and (at least on iTunes), Day's album <a href="http://techcrunch.com/2013/03/18/how-a-youtube-sensation-beat-justin-timberlake-and-the-music-industry/" target="_blank">charted better than Timberlake's</a>, despite Timberlake basically having the entire force of the legacy music industry behind him.
<center>
<a href="http://imgur.com/ZaOShI2"><img src="http://i.imgur.com/ZaOShI2.png" width=200 /></a>
</center>
At that link above, James Altucher has another great interview with Day, in which he (once again) highlights the basics of how he built his success -- hitting on a bunch of points that we've regularly talked about here, and which industry insiders insist could never really work for anyone.  First up, <a href="https://www.techdirt.com/articles/20091119/1634117011/future-music-business-models-those-who-are-already-there.shtml">connect with fans</a>:
<blockquote><i>
Right from my first 30 subscribers, I began talking to the audience that was there and making videos directly for them and replying to comments, but I never saw it as a &#8216;fan base&#8217; &#8211; I mainly just figured we were all bored kids.
</i></blockquote>
Another interesting point: he doesn't perform shows.  This is a very interesting one, because we regularly get attacked in the comments by people who insist that we've claimed that the answer for musicians today is just to tour.  Of course, we've never actually said that.  There's a conflation there between <i>where many artists <b>are</b> making money today</i> and other ways in which artists can make money.  In many ways, Day reminds me of <a href="http://www.techdirt.com/articles/20091204/0029527202.shtml">Pomplamoose</a>, who also used YouTube to build up a huge following and to make a living (both mixed cover songs with originals early on).  You don't need to perform to make money, and Day has proven that.
<blockquote><i>
Performing wasn't an avenue for me &#8211; the only gigs I've done are one-off launch events (to launch my album, for example) or gigs with friends (as I mentioned). I really don't feel the need to gig when I can reach my audience online and hit everyone at once, all over the world, and not exclude anybody, which a tour doesn't do.
</i></blockquote>
And, yes, it sounds like he's doing quite well.  Between YouTube and people buying the music (even though it's available for free on YouTube), he's doing quite well.
<blockquote><i>
Typically I make around &pound;3500 a month from YouTube (I'm on a network so they can sell the ad space higher) and at least &pound;10,000 a month from music and merch sales. I've also done other projects &#8211; I co-created a card game with my cousin which we sell online, I have a business called Lifescouts I launched this year &#8211; which add a bit of extra cash to the pot also.
</i></blockquote>
Basically: connect with fans and give them a reason to buy, and <b>they will</b>, even if the music is available for free.  So much for the idea that <a href="http://www.techdirt.com/articles/20130321/10201522406/tale-two-studies-can-file-sharing-both-harm-help-sales.shtml">no one</a> will ever buy if it's free.
<br /><br />
Also, while some insist that we hate record labels and think there's no role for them at all any more, nothing could be further from the truth.  We've noted, repeatedly, that there is still <a href="http://www.techdirt.com/articles/20100811/18040910598.shtml">a huge role</a> for record labels, <i>helping</i> and <i>enabling</i> artists to do more <i>for the artists that want that</i>.  What's different today is that artists have a <i>choice</i>.  They can use a label, if they think that helps them, or they can do stuff themselves.  And having that choice also gives the artist a lot more power and some more leverage.  So it's interesting to see Day talk about his thoughts on labels.  He's very open minded, pointing out that he's not against signing with a label, but they'd have to actually be able to do something for him and they've yet to show that they can do that without wanting to control absolutely everything.
<blockquote><i>
Labels have never known what the hell to do with me. I always went in with an open mind &#8211; I don't like the idea that being proudly unsigned/independent instantly means I'm white and they're black and we have to duel to the death or whatever. There are a lot of things I do on my own because I have to, so I've got good at them, but it would definitely be easier with outside help! So I was willing to hear what they could offer and how we could work together and I still would be, but I don't think labels are ready to be that humble. They want to control everything. I like being able to decide my own songs and film my own music videos.
<br /><br />
I've had several meetings with Island Records in the UK, the last of which ended with the guy saying he doesn't think I'm ready to be on a label yet because "we only sign artists we can sell at least a million copies of in the next three months" &#8211; but if he's waiting for me to get to that point without him, why do I need the label ever? I've also met with Warner, Sony, EMI &#8211; they were all the same, none of them expected to justify themselves and at best they were just trying to "figure out my secret" and at worst they were completely uninformed and lazy...
</i></blockquote>
He talks about how a one-off deal with Universal solely for distribution of his CD helped get that CD into music shops, which was nice for sales, and those kinds of relationships are interesting to him.  Ones where they control everything and don't add any actual value... are not.  He even points to this <a href="http://www.youtube.com/watch?v=wjB_dtebaRQ" target="_blank">hilarious video</a> about his experience meeting with a major label.  Seriously, watch this video.
<center>
<iframe width="560" height="315" src="http://www.youtube.com/embed/wjB_dtebaRQ" frameborder="0" allowfullscreen></iframe>
</center>
And, of course for those YouTube-haters out there, Day notes that YouTube has basically been everything for him:
<blockquote><i>
It's just YouTube. I have Twitter and Facebook only because I sort of feel I have to, because I need to reach people in those places.... For the personal connection, it's all YouTube. I love it there. It's such a creative outlet. I've been making videos seven years and never got bored of it &#8212; one or two videos a week regularly all that time.
<br /><br />
It genuinely saddens me when YouTube isn't lumped in as one of the essential social metrics with Twitter, Facebook and Tumblr (I do have a Tumblr too but like the others I don't really know how to use it). I understand YouTube and it's changed my whole life.
</i></blockquote>
Wait, weren't we just hearing some old school musician insisting that YouTube had <a href="http://www.techdirt.com/articles/20130220/03360022036/dead-kennedys-guitarist-joins-crusade-against-ad-networks-youtube-despite-understanding-neither.shtml">put 12,000 musicians out of work</a>?  Maybe it's just 11,999 then.  Or, maybe it's the opposite.  Maybe it's created an opportunity for lots and lots of musicians.  But the key, as Day notes, is that you have to actually <i>get</i> YouTube.  Miss that step and (shockingly), it might not work for you.
<br /><br />
Either way, it's great to see Alex continue doing what he does best: making great music, connecting with fans and building a career.<br /><br /><a href="http://www.techdirt.com/blog/casestudies/articles/20130324/01115322434/musician-alex-day-explains-how-he-beat-justin-timberlake-charts-basically-just-via-youtube.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/casestudies/articles/20130324/01115322434/musician-alex-day-explains-how-he-beat-justin-timberlake-charts-basically-just-via-youtube.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/casestudies/articles/20130324/01115322434/musician-alex-day-explains-how-he-beat-justin-timberlake-charts-basically-just-via-youtube.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>i-thought-youtube-was-evil</slash:department>
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</item>
<item>
<pubDate>Fri, 22 Mar 2013 08:01:48 PDT</pubDate>
<title>A Tale Of Two Studies: Can File Sharing Both Harm And Help Sales?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130321/10201522406/tale-two-studies-can-file-sharing-both-harm-help-sales.shtml</link>
<guid>http://www.techdirt.com/articles/20130321/10201522406/tale-two-studies-can-file-sharing-both-harm-help-sales.shtml</guid>
<description><![CDATA[ In <a href="http://www.techdirt.com/articles/20130321/03312722404/tale-two-studies-file-sharing-hurts-sales.shtml">part one</a> of this series, we looked at a study that suggested that file sharing (mainly via Megaupload) likely harmed the sale and rental of digital movies.  In <a href="http://www.techdirt.com/articles/20130321/09114222405/tale-two-studies-file-sharing-helps-sales.shtml">part two</a>, we looked at a study that suggested that file sharing of music (across many sites) likely <em>helped</em> the sale of digital music.  So is one right and the other one wrong?  Not necessarily.  It's possible both are correct.  Unlike some other studies we've seen, the methodologies used by both studies appear to be fundamentally sound, without any obvious problems.  As with just about <i>any</i> study, both studies correctly note that there is the possibility of unknown or unexplained variables impacting the data.  However, both run through a series of tests to try to eliminate a number of possible outside variables, and both come out with results that suggest their initial arguments are robust.
<br /><br />
So, let's try to look at why the two studies might both be right -- and what that might actually mean.  First off, there's the obvious difference: the first study was about movies, and the second study was about music.  While there are obvious similarities between the two, there are also significant differences, which may also lead to differences in consumption.  Movies, for example, tend to involve more initial commitment, since it takes a lot more time to watch a movie.  Music can be consumed much more easily.  But, for music that people like, they're much more likely to listen to it over and over again, whereas most people will view a movie only once.  Even for movies that people absolutely love, they're likely to consume it many fewer times than corresponding music that people love.  And, on top of that, movies come together as a whole package.  Music, for the past few decades, was packaged as a bundle of songs, in the form of an album.  However, the rise of digital distribution for music has often broken apart that bundle, such that people focus on the single unit of the song, rather than the album.
<br /><br />
In those differences are the seeds of why these two studies could both make sense.  The recording industry, obviously, points to the massive decline in overall revenue from recorded music sales.  That is indisputable.  But, much of that can be explained by the breakup of the album into single song sales.  When you're no longer forced to purchase 10 songs you don't care about just to get to the 2 you do, it shouldn't be any surprise that overall sales revenue may decrease.  At the same time, because people can then spread their interest across <i>more</i> artists, something like file sharing can still increase <i>digital distribution sales</i>, because they sample via unauthorized sites, and then purchase a few songs from those they like best.  The file sharing acts as a way to figure out where they want to spend their money, but because they can spend less to get more, overall sales dropped off.  The market is much more efficient.
<br /><br />
Movies, on the other hand, are somewhat different.  There isn't a great unbundling happening there.  And, often, consuming movies is done for a different reason and in a different manner than consuming music.  Watching a movie is a way to "kill" an evening.  Need something to do?  "Let's watch a movie."  As such, you'd expect movie watching behavior to remain more consistent, as people have the same "void" to fill at a regular interval.  And, while alternatives (such as surfing the internet or playing video games) may fill that void, some percentage of the people will prefer movies -- and if one source of movies goes away, they will look for others, and some percentage of those are likely to switch to a pay service.
<br /><br />
There's one other factor that may impact all of this as well, as hinted at in the post about the first study: the level of development of legal services.  For years, we've seen one thing that is almost certainly true: when there are no legal services available, the amount of unauthorized use increases.  Unauthorized use is almost always an indicator of an <i>under-served</i> audience.  And, if you look the development of online music and movie offerings, authorized music services tend to be a lot further along in creating compelling, user-friendly offerings that people find to be "better than piracy."  There are <i>some</i> movie services that are getting there, but movie services are more likely to be encumbered with DRM and annoying restrictions (e.g. "watch the whole thing in 24 hours or you lose it!").
<br /><br />
If anything, this final point is the most compelling explanation to me for the different results in the two studies -- and why I'm less confident that the results of the first study will hold up in the long term, <i>unless</i> Hollywood finally allows the creation of more user-friendly online movie services (i.e., lower prices and less restrictions, which is where the music services have all gone).  In the music world, more and more people are making the gradual shift to authorized services, because they really do provide a good overall experience.  The file sharing that goes on tends to be complementary to all of this because it is one way that people can further sample and figure out what they like, which they can then support within an authorized context (especially since music people like is played repeatedly).
<br /><br />
With movies, on the other hand, you have less of a need to "sample," since the product is often watched just once.  And there, convenience becomes king.  People will flock to the most convenient offering (convenience being a combination of a variety of factors, which may differ per each individual, but generally include elements of ease of use, pricing, overall selection of movies, ability to view in multiple places, ability to watch at different times, etc.)  For many, Megaupload represented the most convenient offering, and after that went away, other services, sometimes pay services, represented the "next best option."  But, those other services are still at risk of newer <i>more convenient</i> services re-emerging and taking back those movie-watchers.
<br /><br />
In those cases, both studies "make sense," but the lessons they suggest may be somewhat different than the lessons put forth by the supporters of the studies.  The authors and supporters of the MPAA study suggest that this proves that shutting down unauthorized sites is a reasonable goal.  I think that may be looking too narrowly at the results, and discounting how much people are focused on the "most convenient" solution.  An even better solution is to <i>provide more convenient offerings</i>, which would win over customers from unauthorized sites even if they aren't taken down.
<br /><br />
Finally, I wanted to respond to the IFPI, which appeared to <a href="http://www.ifpi.org/content/library/IFPI-response-JRC-study_March2013.pdf" target="_blank">completely freak out</a> about the European Commission study, claiming it was flawed:
<blockquote><i>
IFPI believes the JRC study is flawed and misleading. The findings seem disconnected from 
commercial reality, are based on a limited view of the market and are contradicted by a large 
volume of alternative third party research that confirms the negative impact of piracy on the 
legitimate music business.
</i></blockquote>
The IFPI seems to be responding based on emotion, rather than fact, and possibly a misunderstanding of the data.  The data directly supports the <i>commercial reality</i>, which is that <i>digital music sales</i> have been regularly increasing, which the IFPI itself records quite clearly.  The decrease in overall recording industry revenue (the IFPI is misleading in talking about "the legitimate music business" because they really only mean the portion that is recorded music sales), comes from the decline in the sale of physical music: CDs.  And the study only looked directly at digital distribution, not the impact on CD sales.  The other studies that the IFPI refer to look at the connection between file sharing and CD sales, showing a general decline there, but much of that may just be from people shifting from physical (inefficient and wasteful) distribution to digital (efficient) distribution, in which case you'd expect a decline in overall sales, not because of "piracy" but because of less inefficient bundling and physical manufacturing and distribution costs.
<br /><br />
The IFPI also repeats the <a href="http://www.techdirt.com/articles/20130210/15563721940/lies-damn-lies-statistics-how-bpi-cherry-picks-its-averages-to-pretend-file-sharers-spend-less.shtml">BPI's misreading</a> of the "Kantar Worldpanel" data.  That is, they highlight that many people who fileshare don't buy anything, but then leave out the people who neither fileshare nor buy any music, thus setting up an apples and oranges comparison.  They also cite the debunked HADOPI study, despite the fact that reports have already explained how the impact observed in that study likely had more to do with the introduction of new iPhones rather than HADOPI's three strikes policies.
<br /><br />
But, really, the most ridiculous argument in the IFPI response is at the end:
<blockquote><i>
The fundamental problem of the music 
market place remains as true as ever: why pay for music when you can get it illegally free?
</i></blockquote>
The fact that they still believe this to be true is the real problem with the legacy industry in one simple sentence.  They still think the only way to compete is on price.  That's <i>clearly</i> not true, as seen by the IFPI's <i>own data</i>, which consistently shows that <i>massive numbers of people</i> buy all the time, even when they can get it quite easily for free from unauthorized sources.  As noted above, it's really about convenience -- which is a result of a combination of factors, of which price is merely one.  Creating more authorized services that provide greater convenience than unauthorized sites is the most effective way to fight back.  If the IFPI actually focused on providing more value, rather than freaking out every time piracy was detected, we'd be talking about what an amazing time it was for music today, rather than having this same silly debate all over again.
<br /><br />
In the end, despite the IFPI's whining, these two studies do add valuable data to the debate.  And while they may appear to conflict, I don't think they really do. The results both make sense in context, and viewed from a wider angle they suggest, still, that the best way to respond to unauthorized file sharing is to make authorized service more convenient.<br /><br /><a href="http://www.techdirt.com/articles/20130321/10201522406/tale-two-studies-can-file-sharing-both-harm-help-sales.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130321/10201522406/tale-two-studies-can-file-sharing-both-harm-help-sales.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130321/10201522406/tale-two-studies-can-file-sharing-both-harm-help-sales.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>why,-yes</slash:department>
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<pubDate>Fri, 22 Mar 2013 06:32:48 PDT</pubDate>
<title>A Tale Of Two Studies: File Sharing Helps Sales!</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130321/09114222405/tale-two-studies-file-sharing-helps-sales.shtml</link>
<guid>http://www.techdirt.com/articles/20130321/09114222405/tale-two-studies-file-sharing-helps-sales.shtml</guid>
<description><![CDATA[ In the <a href="http://www.techdirt.com/articles/20130321/03312722404/tale-two-studies-file-sharing-hurts-sales.shtml">first part</a> of this three part series, we talked about some research that suggested that the shutdown of Megaupload directly resulted in an increase in the sale and rental of digital movies.  The study's authors used that to suggest that this proves that unauthorized download sites displace actual sales, and that there is likely a positive economic impact on copyright holders when properties like Megaupload are shutdown.  However, as noted, another study that came out just after that one seemed to suggest something very different.
<br /><br />
The second study, put out by the European Council, also is rather compelling, but <a href="ftp://ftp.jrc.es/pub/EURdoc/JRC79605.pdf" target="_blank">argues something almost entirely contradictory</a>: that there is no sign that infringement leads to a decrease in sales.  In fact, it shows a very slight <i>increase</i> in sales.  The researchers here were looking at a different market, however.  They looked at digital music, and the impact of infringing downloads on authorized streams and downloads.  The research found little impact:
<blockquote><i>
Our results suggest that Internet users do not view illegal downloading as a substitute to legal digital music. Although positive and significant, our estimated elasticities are essentially zero: a 10% increase in clicks on illegal downloading websites leads to a 0.2% increase in clicks on legal
purchases websites. Online music streaming services are found to have a somewhat larger (but still small) effect on the purchases of digital sound recordings, suggesting complementarities between these two modes of music consumption. According to our results, a 10% increase in
clicks on legal streaming websites lead to up to a 0.7% increase in clicks on legal digital purchases websites. We find important cross country differences in these effects.
</i></blockquote>
Going a bit further, they note:
<blockquote><i>
Perhaps surprisingly, our results present no evidence of digital music sales displacement. While
we find important cross country differences in the effects of downloading on music purchases, our findings suggest a rather small complementarity between these two music consumption channels. <b>It seems that the majority of the music that is consumed illegally by the individuals in our sample would not have been purchased if illegal downloading websites were not available to them</b>. The
complementarity effect of online streaming is found to be somewhat larger, suggesting a stimulating effect of this activity on the sales of digital music.
<br /><br />
<b>Taken at face value, our findings indicate that digital music piracy does not displace legal music
purchases in digital format.</b> This means that although there is trespassing of private property
rights (copyrights), there is unlikely to be much harm done on digital music revenues.
</i></blockquote>
There are some significant similarities between the two different studies.  Both go through the previous research into this issue and tend to cite almost all of the same papers (which is a good sign) to show what's been done before, and what the limitations are of that research.  Both also focus on the question of <i>online</i> impact.  That is, previous research has tended to focus on the impact on other modes of consumption: i.e., does downloading increase or decrease DVD purchasing, CD purchasing or movie theater sales.  Both of these reports, however, look strictly at unauthorized downloading/streaming as compared to authorized downloading/streaming.
<br /><br />
The specific methodologies differ somewhat, however.  The MPAA paper compares overall sales/rentals vs. Megaupload penetration.  The EC paper looks at <i>direct clickstream traffic data</i> as provided by Nielsen NetView, which collects direct data on exactly what sites people visit.  The EC researchers, Luis Agular and Bertin Martens, then classified visits to different "music consumption" sites to see if they could isolate some sort of relationship between unauthorized streams and downloads and authorized ones.  As with the MPAA study, there are some potential limitations there (mainly in sussing out the details of what people are actually doing on any particular page -- especially when some pages, such as Amazon.com, could result in other activity that is not music related), but the researchers do a good job trying to control for these limitations.
<br /><br />
Also, it's good to see that in some cases the underlying data between the two studies agrees.  Both, for example, show much greater usage of sites that have many unauthorized uses in Spain, for example.  Unfortunately, other than Spain, France and Germany, the selection countries studied in the two reports is mostly different, so it's difficult to confirm other points between the two.
<br /><br />
The EC study confirms another point that should be <a href="http://www.techdirt.com/articles/20121126/00590921141/dear-riaa-pirates-buy-more-full-stop-deal-with-it.shtml">settled</a> by now: those who use unauthorized sites are the biggest fans, by far.
<blockquote><i>
The figures show that legal consumers (individuals that never clicked on an illegal music website
during 2011) are, on average, active 2.5 months a year, while downloaders are active almost 6
months a year. Most interestingly, downloaders are also more active than legals both in terms
of legal downloading (10% more clicks) and legal streaming (40% more clicks), as shown by their
mean values of clicks. A positive relationship between legal and illegal consumption of digital
music therefore emerges from this simple comparison of means. Comparing streamers and non-
streamers (individuals that never clicked on a streaming music website during 2011) leads to
similar conclusions. The figures show that streamers click more than twice as much on legal
downloading websites, while their clicks on illegal downloading websites is 90% higher than for
non-streamers. Again, this simple comparison of means shows a positive relationship between the
different consumption channels and in particular between streaming and legal purchases.
</i></blockquote>
Of course, as many will (rightfully) point out, this is just correlation data, which is useful, but not enough to prove any causal relationship.  So the researchers go further.  They use a number of variables try to separate out which users are most interested in music itself, by looking at whether they visit <i>other</i> music-related websites, such as music lyrics or music news sites, as well as other types of "music consumption" sites like video websites.  Again, the data suggests a clear causal relationship.
<blockquote><i>
Our results suggest that illegal downloading and legal streaming have both a positive and significant
effect on legal purchases of digital music.
</i></blockquote>
As you can see in the report, they continue to slice and dice the data a few different ways to test for other potential variables that might be creating this situation, and each time they fail to find any evidence of it.  Instead, they see the same thing: engaging in unauthorized downloading appears to lead to more digital purchases, and the same for authorized streaming.
<br /><br />
In the third piece in this series, we'll see if we can reconcile what appear to be very different findings in these two studies, as well as respond to the entertainment industry's freak out about this second study.<br /><br /><a href="http://www.techdirt.com/articles/20130321/09114222405/tale-two-studies-file-sharing-helps-sales.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130321/09114222405/tale-two-studies-file-sharing-helps-sales.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130321/09114222405/tale-two-studies-file-sharing-helps-sales.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>the-other-side-of-the-coin</slash:department>
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<pubDate>Wed, 27 Feb 2013 11:11:00 PST</pubDate>
<title>Music Industry Data: Sales Up, Piracy Down... But It's Not Because Of Any 'Anti-Piracy' Efforts</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130227/01483822127/music-industry-data-sales-up-piracy-down-its-not-because-any-anti-piracy-efforts.shtml</link>
<guid>http://www.techdirt.com/articles/20130227/01483822127/music-industry-data-sales-up-piracy-down-its-not-because-any-anti-piracy-efforts.shtml</guid>
<description><![CDATA[ A few folks have sent over variations on two different reports concerning the music industry, with some suggesting that this is "proof" that the recording industry's "war on piracy" has been effective on two fronts: increasing sales and reducing piracy.  Of course, for many years, we've questioned whether or not reducing piracy <a href="http://www.techdirt.com/articles/20120330/18222718314/is-there-any-value-cracking-down-piracy-if-it-doesnt-increase-sales.shtml">actually increases sales</a>, so we looked closely at the numbers and they don't seem to say what some people think they're saying.  The Hollywood Reporter has a <a href="http://www.hollywoodreporter.com/news/recorded-music-industry-revenue-rises-424574" target="_blank">good summary of both reports</a>.  One comes from IFPI, celebrating that "global recorded music revenue" rose 0.3% in 2012.  That is, obviously, a tiny increase, but it is an increase.  Of course, as we've noted, "recorded" music revenue is merely one piece of the wider music industry ecosystem -- and that entire ecosystem has been <a href="http://www.techdirt.com/skyisrising/">growing</a> for quite some time.
<br /><br />
The second report comes from one of the industry's favorite researchers, NPD, claiming a massive decline in music file sharing (based on consumer surveys).  I've found NPD's data to be <a href="http://www.techdirt.com/articles/20110324/16194713614/drop-p2p-file-sharing-due-to-limewire-shutdown-pyrrhic-victory-recording-industry.shtml">suspect</a> in the past, but let's just assume this is true.  Then, can we reach the conclusion that the industry's anti-piracy efforts both worked and that it led to increased sales?
<br /><br />
Actually... no.  Not even close.  We can see this pretty clearly just by looking beyond the recorded music market, to the wider file sharing space.  Various reports have made it clear that widespread file sharing (mostly of infringing content) has continued to grow quite rapidly during the same time period.  Sandvine <a href="http://www.sandvine.com/downloads/documents/Phenomena_2H_2012/Sandvine_Global_Internet_Phenomena_Report_2H_2012.pdf" target="_blank">reports</a> (pdf) that BitTorrent traffic increased <i>40%</i> over the same basic time frame.  Or, zero in on a <i>different</i> market beyond music.  How about software?  The BSA's annual report continues to show <a href="http://portal.bsa.org/globalpiracy2011/downloads/study_pdf/2011_BSA_Piracy_Study-Standard.pdf" target="_blank">increases in "piracy."</a>
<br /><br />
What does that say?  Well, if wider anti-piracy campaigns were effective, we wouldn't just be seeing a decline in music infringement.  We'd see similar declines across the board.  But the overall space and some other, similar, markets are showing <i>increases</i> in infringing content spreading.
<br /><br />
That leads us to the much more reasonable hypothesis: the reason that music piracy is down and revenue is up is <b>because the industry has finally started allowing more innovation</b> into the market.  Not surprisingly, this is <i>exactly what <a href="http://www.techdirt.com/blog/innovation/articles/20120810/02111919983/entrepreneurs-vcs-tell-white-house-to-focus-innovation-rather-than-ip-enforcement.shtml">we've been arguing for years</a></i>.  If you let the tech industry create useful new services that better provide the public with what they want, you get services and products that people are willing to pay for.  And when that happens, infringement decreases, because the legitimate and authorized services are <i>better</i> than infringing.  It's why music infringement fell off a cliff in Sweden when Spotify launched there, despite also being the home of The Pirate Bay.  Notably, when music infringement plummeted in Sweden, other types of infringement did not similarly drop.
<br /><br />
In other words, for all the complaints about these new services, and the many, many attempts to hold them back or neuter them, letting new services grow and thrive seems to be the best "anti-piracy" measure that the record labels could have used.  And yet it still thinks it needs to focus on punishing fans and limiting services.<br /><br /><a href="http://www.techdirt.com/articles/20130227/01483822127/music-industry-data-sales-up-piracy-down-its-not-because-any-anti-piracy-efforts.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130227/01483822127/music-industry-data-sales-up-piracy-down-its-not-because-any-anti-piracy-efforts.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130227/01483822127/music-industry-data-sales-up-piracy-down-its-not-because-any-anti-piracy-efforts.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>let's-walk-this-through</slash:department>
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<pubDate>Tue, 26 Feb 2013 10:14:23 PST</pubDate>
<title>Indian Music Industry Exec Says The Unthinkable: 'Internet Piracy Is A Good Thing'</title>
<dc:creator>Tim Cushing</dc:creator>
<link>http://www.techdirt.com/articles/20130225/18501122111/indian-music-industry-exec-says-unthinkable-internet-piracy-is-good-thing.shtml</link>
<guid>http://www.techdirt.com/articles/20130225/18501122111/indian-music-industry-exec-says-unthinkable-internet-piracy-is-good-thing.shtml</guid>
<description><![CDATA[ If you've followed this site for any length of time, you've heard many opinions on file sharing from many different people. While there are many who have taken a pragmatic or even receptive approach to file sharing (and seen a bunch of "freeloaders" cough up a whole lot of cash), there are many more who only see the downside of copyright infringement.
<br /><br />
What you rarely, if ever, see is a top level executive of a major player in the content industry state, on the record, that not only is piracy a <i>good</i> thing, but it may also be a <i>necessary</i> thing. Here's Mandar Thakur, COO of Times Music, India, <a href="http://asia.broadbandworldforum.com/mandar-thakur-times-music/" target="_blank">commenting on the internet's upheaval of the recording industry</a>.
<blockquote>
<i>I may get lynched for saying this &ndash; but I have always believed that internet piracy was actually, in some ways, a good thing to happen to the industry. If not for that, the music industry would never have pulled its act together and embraced innovation and realised changing consumer behaviour and digital distribution. The challenges the music content industry faces are too vast to lay down here but the most significant one is the fact that the very core of the industry and its business dynamics have been shaken deep due to the consumer&rsquo;s changed consumption habits and habitat, and its value proposition changed forever. It&rsquo;s almost akin to consumers not wanting to pay to consume Coke/Pepsi anymore. In that sense it is as good as creating a brand new entertainment industry, creating brand new value and brand new revenue models at the same time as preserving the existing value/revenue base.</i></blockquote>
Now, before someone writes off Time Music as the equivalent of a boutique label run by three guys out of their stepdad's garage, let's take a look at the facts. Time Music, India is <a href="http://en.wikipedia.org/wiki/The_Times_Group" target="_blank">a division of the Times Group</a>, the "largest mass media company in India," with annual revenue exceeding $1.5 billion and the employer of 11,000 Indians.
<br /><br />
Much of what Thakur stated has been documented here over the years. Piracy may be a problem, but it's also a sign of disruption and an indicator of underserved markets. The problem with the American recording industry is that it spent much more time worrying (and attacking) the first item on the list while ignoring the other two. From what he's stated, Thakur is apparently uninterested in wasting much more time and money trying to eliminate file sharing. This should allow Time Music Inc. to devote those resources towards making money, rather than plugging leaks.
<br /><br />
That he would come out and state this plainly probably won't win him any friends in the IMI (Indian Music Industry), the Indian version of the RIAA. Late last year, IMI <a href="http://www.techdirt.com/articles/20121029/18410320881/indias-recording-industry-wants-power-to-take-down-content-without-notification.shtml" target="_blank">filed a petition</a> in support of India's IT Rules, pushing to be granted the right to take down content within 36 hours, <i>without having to serve notice to the content creator or uploader</i>.
<br /><br />
Thakur may also begin irritating those even higher up on the food chain. IMI is part of International Federation of the Phonographic Industry (IFPI), best known around these parts for serving up an <a href="http://www.techdirt.com/articles/20110120/16182512748/ifpis-annual-attack-piracy-once-again-riddled-with-errors-bogus-claims.shtml" target="_blank">annual report on piracy</a> that's riddled with factual errors and filled to the brim with pleas for various governments to save it from having to make forward progress.
<br /><br />
Not only does Thakur view file sharing as a side effect of industry stasis, he also seems to have a good grip on what consumers actually want -- and how the rollout of better and speedier connections will continue this disruption (and its attendant opportunities).
<blockquote>
<i>Faster access at affordable prices has always created a massive boost for consumption. At one point it was content that was king, then the portable device became the centre of the digital universe and now it&rsquo;s the war of the OSes. The underlying factor across all these spurring growth (or preventing growth) has always been access and in this particular case it&rsquo;s the global LTE and LTE Advanced roll- outs that will accelerate growth, especially in large countries such as India, Indonesia and China. This [growth of access] will be nothing short of an internet revolution, due to the wide-scale consumption it will create as common people&rsquo;s daily habits change.</i></blockquote>
This is also refreshing. Rather than viewing across-the-board increases in bandwidth as nothing but a more efficient conduit for infringement (see also: the <a href="http://www.techdirt.com/articles/20120430/07083218708/googles-fiber-makes-mpaa-skittish-why-does-hollywood-see-all-technology-terms-piracy.shtml" target="_blank">MPAA's comments on Google's fiber rollout</a>), he sees it for what it is: an new, rapidly expanding market.
<br /><br />
It's great to see such clear thinking from someone inside the industry. IMI and IFPI may not be happy with a pirate-loving COO heading a major music outlet, but it appears he's in place to catch a new market on the upswing, an uncommon experience for those in his position.<br /><br /><a href="http://www.techdirt.com/articles/20130225/18501122111/indian-music-industry-exec-says-unthinkable-internet-piracy-is-good-thing.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130225/18501122111/indian-music-industry-exec-says-unthinkable-internet-piracy-is-good-thing.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130225/18501122111/indian-music-industry-exec-says-unthinkable-internet-piracy-is-good-thing.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>he's-saying-what-we're-all-thinking!-and-saying!</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130225/18501122111</wfw:commentRss>
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<pubDate>Tue, 12 Feb 2013 14:55:00 PST</pubDate>
<title>Music Publishers: We Need Strong Copyright Laws Because We Don't Like The Consumer Electronics Association</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130208/01435321915/music-publishers-we-need-strong-copyright-laws-because-we-dont-like-consumer-electronics-association.shtml</link>
<guid>http://www.techdirt.com/articles/20130208/01435321915/music-publishers-we-need-strong-copyright-laws-because-we-dont-like-consumer-electronics-association.shtml</guid>
<description><![CDATA[ A few folks have sent over a Forbes article by David Israelite, the head of the National Music Publishers Association (NMPA), provocatively entitled: <a href="http://www.forbes.com/sites/forbesleadershipforum/2013/02/04/we-need-strong-copyright-laws-now-more-than-ever/" target="_blank">We Need Strong Copyright Laws Now More Than Ever</a>.  I read it carefully, expecting an argument to discuss concerning copyright law... but it never comes.  Instead, the entire article appears to be about how the Consumer Electronics Association is big, and the NMPA is small.  So, copyright.
<br /><br />
Technically, the article is a "response" to another Forbes piece, by Gary Shapiro, the head of the Consumer Electronics Association, in which he notes that a series of recent issues suggests that copyright law is not serving its proper function, and the time is right to <a href="http://www.forbes.com/sites/garyshapiro/2013/01/30/its-time-for-a-fresh-look-at-copyright-laws/" target="_blank">take "a fresh look at copyright laws."</a>  The article makes the case that copyright laws do have a purpose, and it even celebrates some actions by the entertainment industry to seek to innovate and embrace some new technologies.  There's actually very little that I think anyone on any side of the debate should find particularly controversial.  So, without an actual argument possible to make, Israelite decided to just focus solely on the fact that CEA is bigger than NMPA.
<br /><br />
The first eight paragraphs of the article are just attacks on CEA.  Then there's finally one paragraph that actually talks about copyright.  Just one:
<blockquote><i>
Copyright significantly contributes to the trade balance for our nation. A song written decades ago in Nashville can be heard, legally, in Japan, and today&#8217;s American hits instantly become top international downloads. Products associated with copyright, and this goes beyond music to include television, movies, newspapers, magazines, books, and computer software, are one of the few sectors expanding internationally. The most recent data finds copyright industries outpacing aircraft, auto, food, and pharmaceuticals in sales and exports. And as our economy gets back on track, consider the power behind songwriter-driven small businesses that provide jobs in every state.
</i></blockquote>
Of course, there are multiple problems and misleading aspects to this paragraph.  It assumes that copyright is the same thing as the music itself.  While the music may contribute to the economy, that does not mean that <i>copyright</i> itself contributes to the economy.  Second, he assumes that "stronger" copyright laws would somehow increase the ability of those sectors to make money, when there's little evidence to actually support that.  There's just a big correlation/causation error.   Either way, nothing in the post actually touches on the title of the article.  It basically is just a piece to bash the Consumer Electronics Association because Shapiro mentioned in his article that the NMPA supported SOPA last year, and how that was a move in the wrong direction.<br /><br /><a href="http://www.techdirt.com/articles/20130208/01435321915/music-publishers-we-need-strong-copyright-laws-because-we-dont-like-consumer-electronics-association.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130208/01435321915/music-publishers-we-need-strong-copyright-laws-because-we-dont-like-consumer-electronics-association.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130208/01435321915/music-publishers-we-need-strong-copyright-laws-because-we-dont-like-consumer-electronics-association.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>um,-what?</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130208/01435321915</wfw:commentRss>
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<pubDate>Mon, 11 Feb 2013 07:51:29 PST</pubDate>
<title>Three Strikes May Decrease File Sharing, But If Sales Keep Dropping, Who Cares?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130210/02001321933/three-strikes-may-decrease-file-sharing-if-sales-keep-dropping-who-cares.shtml</link>
<guid>http://www.techdirt.com/articles/20130210/02001321933/three-strikes-may-decrease-file-sharing-if-sales-keep-dropping-who-cares.shtml</guid>
<description><![CDATA[ A year ago, we asked what could possibly be the "value" in "cracking down on piracy" if that didn't then lead to increased sales.  It's an issue that we've dealt with time and time again.  We ask people a simple question: would you rather stop piracy or make more money?  Most people note that the latter is the real goal.  If the former <i>does not lead to the latter</i> then what good does "stopping piracy" actually do?  The answer is none at all.  The latest data out of France shows that, despite Hadopi (the administrators of the 3 strikes program) claiming some sort of victory because stats on file sharing are down, the bigger issue is that <a href="http://www.digitalmusicnews.com/permalink/2013/20130206p2pfrance" target="_blank">the sale of recorded music keeps declining</a>.  Digital Music News, who normally supports the the "anti-piracy" side of things, has some slides from French labels that show that sales keep decreasing, even as Hadopi highlights a big drop in file sharing and the use of cyberlockers.  But all that really matters is this one:
<center>
<a href="http://imgur.com/7MeiIVT"><img src="http://i.imgur.com/7MeiIVT.jpg" width=560 /></a>
</center>
This is the key point that we've been making for well over a decade now.  "Fighting" piracy is not the same as making more money.  The focus should be on figuring out ways to make money.  Even if we believe that copyright infringement is a bad thing, if efforts to stop it are both expensive and ineffective, <i>why continue?</i>  It makes absolutely no sense.  Instead, let's focus on the areas of the industry that have shown that they are expanding and where there's lots of money to be made for those who embrace them.
<br /><br />
Oh, and for what it's worth, you have to imagine that the "declines" reported in file sharing and cyberlockers severely undercounts those things too, as using some rather basic tools can let people hide that sort of information from being collected -- and the efforts by Hadopi to "educate" the public likely educated them about how to use VPNs.  It does not appear to have educated them to go back to buying at the same levels as the artificially inflated rates in the past.<br /><br /><a href="http://www.techdirt.com/articles/20130210/02001321933/three-strikes-may-decrease-file-sharing-if-sales-keep-dropping-who-cares.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130210/02001321933/three-strikes-may-decrease-file-sharing-if-sales-keep-dropping-who-cares.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130210/02001321933/three-strikes-may-decrease-file-sharing-if-sales-keep-dropping-who-cares.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>and-so-it-goes</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130210/02001321933</wfw:commentRss>
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<pubDate>Fri, 8 Feb 2013 18:40:22 PST</pubDate>
<title>Copyright Explained Musically</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130204/18145421881/copyright-explained-musically.shtml</link>
<guid>http://www.techdirt.com/articles/20130204/18145421881/copyright-explained-musically.shtml</guid>
<description><![CDATA[ For those of you who claim that copyright inspires no creativity whatsoever, perhaps you have not seen the following video, <a href="http://pandodaily.com/2013/02/01/pandohouse-rock-copyright-explained/" target="_blank">PandoHouse Rock: Copyright, explained</a>, a collaboration between PandoDaily and Explainer Music's David Holmes:
<center>
<iframe title="PandoDaily Video Player" width="560" height="315" src="http://video.pandodaily.com/player/f4t" frameborder="0" webkitallowfullscreen mozallowfullscreen allowfullscreen></iframe>
</center>
I usually find these sorts of things to be pretty bad.  Copyright isn't something that you can usually simplify down to a song, but this one actually does a pretty good job of making the key point: which is that copyright is a crazy mess and widely abusable and abused.  There are a few minor points I might quibble with (it's not clear that "It's A Wonderful Life" is really <a href="http://www.film-center.com/canishow.html" target="_blank">in the public domain</a> for example), but on the whole it's one of the better such videos we've seen.  Oh yeah, also, Holmes has put the video itself into the public domain, which is something we do with Techdirt content as well, but which very few other people do.  Nicely done.
<br /><br />
So, yes, copyright may have inspired this song... to be put into the public domain.<br /><br /><a href="http://www.techdirt.com/articles/20130204/18145421881/copyright-explained-musically.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130204/18145421881/copyright-explained-musically.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130204/18145421881/copyright-explained-musically.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>copyright-does-inspire-some-creativity</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130204/18145421881</wfw:commentRss>
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<pubDate>Thu, 24 Jan 2013 14:45:13 PST</pubDate>
<title>GEMA Takes Kim Dotcom's Mega Launch Party Video Down, Despite All Songs Being Cleared</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130124/01351421774/gema-takes-kim-dotcoms-mega-launch-party-video-down-despite-all-songs-being-cleared.shtml</link>
<guid>http://www.techdirt.com/articles/20130124/01351421774/gema-takes-kim-dotcoms-mega-launch-party-video-down-despite-all-songs-being-cleared.shtml</guid>
<description><![CDATA[ GEMA and MEGA may have the same letters arranged differently, but you have to imagine that the hardline copyright maximalists at GEMA aren't at all pleased by Kim Dotcom's new Mega outfit, even if it's really not all that different than tons of other online cloud storage platforms.  Still, it is a bit odd to see that GEMA <a href="http://torrentfreak.com/mega-launch-video-removed-from-youtube-by-music-rights-outfit-130124/?utm_source=dlvr.it&#038;utm_medium=twitter" target="_blank">had Mega's launch video removed</a> from YouTube.  There was music in the video, but as Dotcom notes, it was either his own music, or music by musicians who all gave permission to use it.  My guess is that it may have more to do with the ongoing <a href="http://www.techdirt.com/blog/?company=gema">dispute</a> between GEMA and YouTube, which means that any video with GEMA content is blocked in Germany.  However, Dotcom filed a dispute, and notes that he plans to have his lawyers discuss the matter with GEMA.<br /><br /><a href="http://www.techdirt.com/articles/20130124/01351421774/gema-takes-kim-dotcoms-mega-launch-party-video-down-despite-all-songs-being-cleared.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130124/01351421774/gema-takes-kim-dotcoms-mega-launch-party-video-down-despite-all-songs-being-cleared.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130124/01351421774/gema-takes-kim-dotcoms-mega-launch-party-video-down-despite-all-songs-being-cleared.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>gema-again</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130124/01351421774</wfw:commentRss>
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<pubDate>Thu, 10 Jan 2013 14:31:27 PST</pubDate>
<title>Now That Amazon Is Offering Auto-Rip Of CDs You Bought, Will It Do The Same For Books?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130110/12462521630/now-that-amazon-is-offering-auto-rip-cds-you-bought-will-it-do-same-books.shtml</link>
<guid>http://www.techdirt.com/articles/20130110/12462521630/now-that-amazon-is-offering-auto-rip-cds-you-bought-will-it-do-same-books.shtml</guid>
<description><![CDATA[ Times change.  Amazon is making some news by <a href="http://news.cnet.com/8301-1023_3-57563190-93/amazon-to-launch-auto-rip-an-effort-to-sex-up-cds/" target="_blank">launching an auto-rip service</a> that puts MP3 copies of songs into your Amazon cloud storage when you buy CDs.  Some have been comparing this to the old MP3.com "Beam It!" service that got MP3.com sued out of existence a while back, but this is quite different on one key dimension: Amazon has licensing deals with the major labels which specifically allow this (which also means it doesn't work on all CDs).
<br /><br />
Still, this move does raise some interesting question.  For example: <a href="https://twitter.com/blankbaby/status/289389806637682688" target="_blank">why not do this for books too</a>?  Why not have it so that when you buy a physical book, a digital copy automatically shows up on your Kindle?  Of course, the real answer isn't difficult to glean: because the publishers have no interest at all in doing this (yet).  I expect they'll do it eventually, but the publishers are still going through the same denial phase that many in the recording business went through earlier, and so it's probably still going to be at least a year before some publisher comes around to such a deal (and then it will be announced as "big news" when it happens).
<br /><br />
Another interesting question is whether or not the "AutoRip" service leads to <a href="https://twitter.com/SherwinPK/statuses/289409143104749568" target="_blank">more resells of CDs</a> soon after people buy them.  As Sherwin Siy notes, it may not actually be different than buying a CD and ripping it yourself, but the automated nature of it may make it easier to simply pass on the CD.  Of course, does that mean you're legally supposed to delete the MP3s too?  I'm sure the industry would argue that's the case, but it might not be that clear cut.
<br /><br />
In the end, this really is the kind of thing that the recording industry <i>should have</i> embraced a decade ago, so welcome to the party (a bit late).<br /><br /><a href="http://www.techdirt.com/articles/20130110/12462521630/now-that-amazon-is-offering-auto-rip-cds-you-bought-will-it-do-same-books.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130110/12462521630/now-that-amazon-is-offering-auto-rip-cds-you-bought-will-it-do-same-books.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130110/12462521630/now-that-amazon-is-offering-auto-rip-cds-you-bought-will-it-do-same-books.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>why-not?</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130110/12462521630</wfw:commentRss>
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<pubDate>Mon, 7 Jan 2013 05:39:43 PST</pubDate>
<title>Confusing Value And Price, Choir Demands &#163;3000 Per Download</title>
<dc:creator>Tim Cushing</dc:creator>
<link>http://www.techdirt.com/blog/casestudies/articles/20121228/12224621513/confusing-value-price-choir-demands-3000-per-download.shtml</link>
<guid>http://www.techdirt.com/blog/casestudies/articles/20121228/12224621513/confusing-value-price-choir-demands-3000-per-download.shtml</guid>
<description><![CDATA[ If you asked most people what a single track is worth, most would answer with the going market price, which ranges from ~$0.79-$1.29. This is what the market has shown, for the most part, that it will bear. You veer too far away from the high end of that range and you'll find most people will opt for other music, cheaper music, or your music, fully detached from the high-end price tag.<br />
<br />
Now, if you ask this same question of a certain 22-piece self-described "feminist alternative choir," the answer would be much, much different. Your initial estimate would need to be upped by approximately $4,850. Gaggle, the 22-member choir, has announced that they are selling their new single for <a href="https://bleep.com/release/41111#description" target="_blank">&pound;3,000 <i>per download</i></a> (no physical option exists). Why? <a href="http://www.thelineofbestfit.com/news/latest-news/gaggle-put-new-single-on-sale-for-3000-114910" target="_blank">Because they've chosen to use the persuasive power of economic fallacies to get people talking about "value."</a><br />
<br />
Here's the womanifiesto:
<blockquote>
<i>"The Power of Money. What does money mean to you? How do you put a value on the things you care about? Is money the same thing as worth? Like it or not, money means that some people are rich and others poor, some considered successful, others failures. It determines your healthcare choices, education, clothes and how long you have the heating on for &ndash; whether you can have the things you want. But money is made up. Without our participation in the illusion, it's meaningless &ndash; in fact, if meaning equated to value, we would happily burn all the money tomorrow. Gaggle, of course, uses money. But Gaggle is an exercise in the power of other things as well &ndash; otherwise we wouldn't, and couldn't, exist. The Power of Generosity, Inventiveness, Courage. The Power of Flirting, Improvising, Blagging, Hard Work and Being Nice and Polite. The Power of Friendship, Faith, Obligation, Ambition, Anxiety&hellip;..Dreams. Without these Powers this track would not have been made. This song is precious. And yet, we're told that 'a single' is almost valueless. And that pisses us off. So we have done a budget of how much this single 'cost'. The many hours it took to write, arrange, compose, master; the expertise of all the musicians, technicians, designers, producers involved; the combination of all the Powers described above and more &ndash; we've totted it all up as best we can and&hellip; &hellip;we are putting this tune to market for the sum of &pound;3000. The power of money? Let's see."</i></blockquote>
Well, good luck with that. It's been said time and time before, the customer has <a href="http://www.techdirt.com/articles/20120503/14160618768/nobody-cares-about-fixed-costs-your-book-movie-whatever.shtml" target="_blank">little to no interest in your fixed costs</a>. This factor is completely irrelevant to purchase decisions, which are most often based on a more subjective perception of "value." While Gaggle may value their creation highly, it would be ignorant to assume that potential purchasers will value the track accordingly. In an era where <a href="http://www.techdirt.com/articles/20120409/07445618428/if-piracy-is-so-devastating-why-are-we-seeing-unprecedented-outpouring-creativity.shtml" target="_blank">creative output is at its highest</a>, the sheer number of competing, cheaper options would be enough to bury this track's chances, even if Gaggle decided &pound;5 was a reasonable amount to ask. (It isn't.)<br />
<br />
Beyond that, there's some questions as to Gaggle's math. Are they intending for <i>one</i> sale to reimburse the entire creative effort? 10? 25? Wouldn't it be better to sell a few thousand copies at a price that people will <i>actually pay</i>, rather than pin the hopes of the collective on sales in the single digits? For that matter, wouldn't this scenario be more <i>likely</i> as well? And is it really fair to ask purchasers to support <i>22 musicians</i> through the purchase of a single track? Aren't you running about 10-15 members over the upper limit for potentially successful bands that aren't named <a href="http://en.wikipedia.org/wiki/Broken_Social_Scene" target="_blank">Broken Social Scene</a> or <a href="http://en.wikipedia.org/wiki/Chicago_(band)#Members" target="_blank">Chicago</a>?<br />
<br />
But the issue at hand here really <i>isn't</i> &pound;3000 or the perceived value of a single track versus the true cost of production. Gaggle's move here is a publicity stunt, primarily aimed at raising awareness of the band with a secondary aim of opening a dialogue about the value of artistic endeavors. All well and good except that it's rather hard to hold a discussion with a group whose opening gambit is to hurl themselves off the deep end while everyone else looks on in bemusement.<br /><br /><a href="http://www.techdirt.com/blog/casestudies/articles/20121228/12224621513/confusing-value-price-choir-demands-3000-per-download.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/casestudies/articles/20121228/12224621513/confusing-value-price-choir-demands-3000-per-download.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/casestudies/articles/20121228/12224621513/confusing-value-price-choir-demands-3000-per-download.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>let's-discuss-this-rationally----I'll-start-by-setting-an-insane,-but-&amp;#</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20121228/12224621513</wfw:commentRss>
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<item>
<pubDate>Thu, 3 Jan 2013 07:26:53 PST</pubDate>
<title>Welsh Radio Station Forced To Play Classical Music, English Songs After Royalty Talks Stall</title>
<dc:creator>Tim Cushing</dc:creator>
<link>http://www.techdirt.com/articles/20130102/16241921552/welsh-radio-station-forced-to-play-classical-music-english-songs-after-royalty-talks-stall.shtml</link>
<guid>http://www.techdirt.com/articles/20130102/16241921552/welsh-radio-station-forced-to-play-classical-music-english-songs-after-royalty-talks-stall.shtml</guid>
<description><![CDATA[ Another battle between artists&#39; representatives and an outlet for these same artists to be heard has resulted in... one less place for these artists to be heard. Radio Cymru, the Welsh arm of BBC Radio, <a href="http://www.bbc.co.uk/news/uk-wales-20878895" target="_blank">has cut its broadcast day by two hours and drastically altered its playlist after losing its right to use a catalog of 30,000 Welsh songs</a>.
<blockquote>
<i>Classical music and hymns are replacing rock and pop on BBC Radio Cymru as the deadline for a rights deal with leading Welsh-language musicians passes.</i><br />
<br />
<i>The right to broadcast the songs of 331 Welsh-language musicians and music publishers rests with Eos - the Welsh word for nightingale - from today.</i><br />
<br />
<i>The BBC said Eos had rejected a substantial offer to settle the dispute shortly before Christmas. As no agreement was reached, Radio Cymru has implemented changes to its broadcasting hours and programme content.</i><br />
<br />
<i>BBC Cymru Wales said in a statement on Monday it was "very disappointed" an agreement had not been reached and confirmed Radio Cymru programmes would be affected.</i></blockquote>
<blockquote>
<i>"Radio Cymru&#39;s commitment to support and develop Welsh music is a longstanding one - and we have listened carefully to the concerns of Welsh-language composers and artists during this dispute," the statement said.</i></blockquote>
Once again, the desire to make a cash grab has overwhelmed the desire to be heard. And it always seems to be "representatives" of the artists that keep <a href="http://www.techdirt.com/articles/20101007/11300711326/ascap-tells-artists-it-s-cutting-their-payments-as-it-brags-to-the-press-how-much-more-money-it-s-collecting.shtml" target="_blank">cutting ahead in line</a> to get their hands out first, often at the expense of the very artists they "serve."<br />
<br />
Unsurprisingly, the pernicious acts of another performance rights group is behind Eos&#39; search for a "fair price." Having been screwed by an <a href="http://www.techdirt.com/blog/?company=prs" target="_blank">old Techdirt favorite</a>, Eos is now attempting to force the BBC make up for PRS&#39; actions.
<blockquote>
<i>The musicians broke away from the Performing Rights Society (PRS) to join a new agency, claiming they were being short-changed for their work. The dispute arose from a change by the PRS in 2007 which many Welsh language artists claim cut their royalty payments by as much as 85%.</i></blockquote>
Rather than attempt to get PRS to pay this "fair share," Eos has decided to go after the broadcasters who had nothing to do with the severe slashing of royalty payments, which fell from &pound;1.6m in 2007 to &pound;260,000 in 2009. <a href="http://www.bbc.co.uk/news/uk-wales-11507460" target="_blank">Eos is acting on the recommendation of research paper published in 2009</a> that presented a way to generate (or at least ask for) nearly 10 times the going rate per minute of broadcast time.
<blockquote>
<i>The report says artists who broadcast on BBC Radio Cymru receive 49p for every minute of airtime, collected by PRS.&nbsp;However, it says Radio Cymru is treated like an English local radio station, rather than a national broadcaster</i><br />
<br />
<i>The report argues that if the station was available on the UK DAB network of digital stations, artists would earn &pound;4.71 per minute, nearly ten times as much.&nbsp;It said a Welsh-based royalties agency would be aiming to bring back in something more like the larger DAB royalties fees.</i><br />
<br />
<i>"Welsh language repertoire - Radio Cymru relies on that for its broadcasting," pointed out the report&#39;s joint author, Deian ap Rhisiart.&nbsp;"If the whole composers and publishers en block declare they are terminating their membership with the PRS, then the BBC haven&#39;t got any choice but to deal with them - that&#39;s the scenario."</i></blockquote>
At that point, a spokesman for BBC Wales (quite logically) claimed that this was a dispute between PRS and its Welsh members, and that these two entities should attempt to solve it on their own. Unfortunately, Welsh artists decided it would be better to set up their own organization and tangle with the BBC directly. The end result? An outcome that overreaching rights organizations all over the world are familiar with: <a href="http://www.techdirt.com/articles/20120717/21191419737/gema-hikes-venue-performance-royalties-500-threatens-germanys-underground-club-scene.shtml" target="_blank">no additional income and the loss of an outlet</a>.<br />
<br />
So, in a quest for "more," Welsh artists have ended up with less (at least temporarily) exposure and the very real potential of finding themselves vilified by the same listeners who used to consider themselves fans. Rather than go after PRS for screwing Welsh artists, Eos decided to pass the screwing along to Radio Cymru, pricing itself out of the market and depriving itself of a useful promotional tool.<br /><br /><a href="http://www.techdirt.com/articles/20130102/16241921552/welsh-radio-station-forced-to-play-classical-music-english-songs-after-royalty-talks-stall.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130102/16241921552/welsh-radio-station-forced-to-play-classical-music-english-songs-after-royalty-talks-stall.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130102/16241921552/welsh-radio-station-forced-to-play-classical-music-english-songs-after-royalty-talks-stall.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>trading-away-reputation-for-$$$</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130102/16241921552</wfw:commentRss>
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<pubDate>Fri, 28 Dec 2012 08:22:00 PST</pubDate>
<title>Copyfraud: Copyright Claims On CDs Say It's Infringement To Loan Your CD To A Friend</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20121226/13141921491/copyfraud-copyright-claims-cds-say-its-infringement-to-loan-your-cd-to-friend.shtml</link>
<guid>http://www.techdirt.com/articles/20121226/13141921491/copyfraud-copyright-claims-cds-say-its-infringement-to-loan-your-cd-to-friend.shtml</guid>
<description><![CDATA[ We've talked a lot about the concept of <a href="http://www.techdirt.com/blog/?tag=copyfraud">"copyfraud,"</a> the increasingly common activity of copyright holders claiming more rights than copyright allows.  It happens all the time, but sometimes it's really egregious.  Wired is reporting on how the super popular band Mumford &#038; Sons CD, <i>Babel</i> includes <a href="http://www.wired.com/underwire/2012/12/mumford-sons-lending-copyright/" target="_blank">a copyright warning label that says it's infringement to <b>lend</b> the CD to anyone</a>:
<blockquote><i>
&#8220;The copyright in this sound recording and artwork is owned by Mumford &#038; Sons. Warning: all rights reserved. Unauthorized copying, reproduction, hiring, <b>lending</b>, public performance and broadcasting prohibited.&#8221; 
</i></blockquote>
You can see a scan of the back of the CD here, which includes the warning on the left:
<center>
<a href="http://imgur.com/Sxwqd"><img src="http://i.imgur.com/Sxwqd.jpg" width=560 /></a>
</center>
Here's a rotated and zoomed in image:
<center>
<a href="http://imgur.com/pOcdM"><img src="http://i.imgur.com/pOcdM.png" width=560 /></a>
</center>
While this is clearly copyfraud, the article makes a few important points.  First, it's bizarre that they've included this tidbit in their warning, when the boss of the label they're on, Glassnote, has made it clear that <a href="http://www.mtv.com/news/articles/1694739/mumford-and-sons-babel-album-sales-chart.jhtml" target="_blank">"the fans really do come first and word of mouth is important."</a>  If that were true, you probably wouldn't lie to fans and tell them its illegal to lend out the CD.
<br /><br />
However, the article raises a larger point concerning "first sale rights" and the <a href="http://www.techdirt.com/blog/?tag=kirtsaeng">Kirtsaeng case</a> that the Supreme Court will be deciding one of these days.  If the CD were made outside of the US, it's possible that Glassnote/Mumford &#038; Sons could start <i>legitimately</i> banning lending, since first sale rights will no longer apply.  Wired quotes copyright lawyer Andrew Bridges (you might <a href="http://www.techdirt.com/articles/20111208/08225217010/breaking-news-feds-falsely-censor-popular-blog-over-year-deny-all-due-process-hide-all-details.shtml">recognize</a> his name), who first called everyone's attention to this bizarre choice:
<blockquote><i>
&#8220;If this disc was made in Mexico, then it may be that I don&#8217;t have the right to lend it to anybody under the plaintiff&#8217;s view in the Kirtsaeng case,&#8221; Bridges said. &#8220;That actually highlights the importance of the Supreme Court&#8217;s pending case.&#8221;
</i></blockquote>
Of course, while the Wired article suggests this is a new thing, <a href="http://www.techdirt.com/user/takacscj">Sneeje</a> helpfully points out that it's not <i>that</i> uncommon.  And, if you look around, you can find the same terms on <a href="https://www.google.com/webhp?sourceid=chrome-instant&#038;rlz=1C1LENP_enUS477US477&#038;ion=1&#038;ie=UTF-8#hl=en&#038;safe=off&#038;tbo=d&#038;rlz=1C1LENP_enUS477US477&#038;output=search&#038;sclient=psy-ab&#038;q=Unauthorized%20copying%2C%20reproduction%2C%20hiring%2C%20lending&#038;oq=&#038;gs_l=&#038;pbx=1&#038;fp=6eb1946313ccd7d2&#038;bpcl=40096503&#038;ion=1&#038;bav=on.2,or.r_gc.r_pw.r_cp.r_qf.&#038;bvm=bv.1355534169,d.cGE&#038;biw=1611&#038;bih=711">other albums as well</a>, including <a href="http://pinkfloydarchives.com/DNLLPRW.htm" target="_blank">by Roger Waters</a> and <a href="http://www.discogs.com/kanYeWest-Stronger/release/1103637" target="_blank">Kanye West</a> -- so it's not fair to blame Mumford &#038; Sons specifically for this.
<br /><br />
Spin Magazine claims to <a href="http://www.spin.com/articles/mumford-sons-babel-lending-borrowing-copyright-debunked" target="_blank">debunk the Wired article</a>, also by pointing out that this phrase has been widely used for the past 20 years, and arguing that it's accurate in Europe, due to its directive on <a href="http://ec.europa.eu/internal_market/copyright/rental-right/index_en.htm" target="_blank">"rental and lending rights."</a>  Though, Spin's "debunking" deserves a bit of a debunking itself, since the "rental and lending rights" are specific to <a href="http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52002DC0502:EN:NOT" target="_blank">things like libraries</a>.  The specifics of the directive are that it applies to lending "made through establishments that are accessible to the public."  The <i>problem</i> of course, with the simple terms used on the CDs, is that they make no such distinction.  And though no one will enforce this against lending a CD to a friend, it <i>remains</i> a case of copyfraud, in which the public is being told that they cannot lend the CD due to copyright law, even if that's not accurate at all.
<br /><br />
Whether the use of the term is new or not really doesn't much matter in the long run.  Spin is right that it's not Mumford &#038; Sons specifically that's the problem here (and it's not clear which CDs get this and which don't), but the inclusion of a claimed prohibition on lending still is a form of copyfraud and an attempted expansion of claimed rights.<br /><br /><a href="http://www.techdirt.com/articles/20121226/13141921491/copyfraud-copyright-claims-cds-say-its-infringement-to-loan-your-cd-to-friend.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20121226/13141921491/copyfraud-copyright-claims-cds-say-its-infringement-to-loan-your-cd-to-friend.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20121226/13141921491/copyfraud-copyright-claims-cds-say-its-infringement-to-loan-your-cd-to-friend.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>copyfraud-and-sons</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20121226/13141921491</wfw:commentRss>
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<pubDate>Mon, 17 Dec 2012 08:38:01 PST</pubDate>
<title>El-P To Radio: Let DJs Be DJs, And Stop Thinking Of Yourselves As Gatekeepers</title>
<dc:creator>Leigh Beadon</dc:creator>
<link>http://www.techdirt.com/articles/20121210/10051221336/el-p-to-radio-let-djs-be-djs-stop-thinking-yourselves-as-gatekeepers.shtml</link>
<guid>http://www.techdirt.com/articles/20121210/10051221336/el-p-to-radio-let-djs-be-djs-stop-thinking-yourselves-as-gatekeepers.shtml</guid>
<description><![CDATA[ <p>One of the running themes we discuss here is the difference between <em>gatekeepers</em> and <em>enablers</em>, but there's also a third category that overlaps both of the others to some degree, and is more relevant than ever in a media-saturated world: <em>curators</em>. Though recommendation and matching algorithms are taking on some of the curation roles that humans used to fill (or that didn't exist before), nobody has ever suggested that there's no longer a need for hands-on human curation of media.</p>
<p>When it comes to music, the classic curation role is the radio DJ&mdash;but, like so many traditional fixtures of the industry, that role has increasingly (though not universally) drifted away from creative personal curation and towards safe, commercially-dictated playlists. Music blogs and podcasts have stepped in to fill the void, and today the best barometer of what's worth listening to is online, not on the airwaves&mdash;especially for those listeners interested in discovering the most compelling acts emerging from small, independent scenes.</p>
<p>Perhaps no genre feels this more acutely than hip-hop, which still enjoys widespread radio play as one of the dominant pop genres of the past decade, but where even the most widely acclaimed indie acts with a decade of rock-solid releases under their belts struggle to get onto DJ playlists. Rapper/producer/indie hip-hop fixture El-P (who dropped by with a <a href="http://www.techdirt.com/articles/20120501/12103918730/asking-fans-support-isnt-begging-its-solidifying-our-relationship.shtml">guest post</a> earlier this year) recently <a href="http://www.egotripland.com/el-p-radio-play-twitter/" target="_blank">took to twitter (found via egotripland)</a> and gave a straightforward rundown of why so much of radio is broken and what DJs need to do to fix it. The self-proclaimed "rant" was in response to an New York DJ who was asked why he didn't play underground records that had a lot of audience buzz, and responded by saying "you don&#8217;t just get a slot, you earn a slot"&mdash;but even without context, El-P's points serve as a perfect summary of what it means to be a curator in the modern music landscape. You can view the <a href="http://www.egotripland.com/el-p-radio-play-twitter/" target="_blank">full set of tweets on the egotripland post</a>, but I've copied the sum of the text below:</p>
<blockquote><em>if you're a radio station that doesn't break new great records because they haven't "earned their slot" you might be forgetting the point.
<br /><br />
unless of course you are talking payola. then i get it.
<br /><br />
not to state the obvious but that's kinda why radio is dying. the internet lets you listen to ANYTHING ANYTIME. its a simple truth.
<br /><br />
being the gatekeepers of what people hear only works if they actually have to get by you in order to hear it, and thats just not the case.
<br /><br />
therefore in order to be competitive with the new paradigm radio programmers need to re-examine their whole approach or what it all die.
<br /><br />
*watch it all die, i mean.
<br /><br />
just my 2 cents. fuck do i know.
<br /><br />
which is not to say radio has lost its power. but to not see that on the horizon if everything remains on the same path is foolish.
<br /><br />
personally i feel like radio dj's should have more autonomy to play what they like/not have to choose from pre approved content. might help.
<br /><br />
it certainly would encourage the music to grow if everyone wasn't desperately trying to make jams that they think fit in with that criteria.
<br /><br />
and that would lead to more and renewed interest in traditional radio broadcasts, which would lead to more money for everyone.
<br /><br />
but hey i come from an era where we had cats like @StretchArmy and bobbito launching the careers of people who go platinum now. im spoiled.
<br /><br />
look at whats happened to the newspaper industry. no one wants their news a day later anymore. theres a metaphor in there somewhere.
<br /><br />
also there are clearly many amazing stations that do just what im talking about and breed serious listener loyalty.
<br /><br />
it ain't like i'm speaking some sort of hidden esoteric knowledge/philosophy here. but its worth bringing up now and again.
<br /><br />
anyone way its just the opinion of one man. #fuckdoiactuallyknow
<br /><br />
one more thought: music is a representation of human consciousness, and like human consciousness it is expansive and varying.
<br /><br />
it wouldn't hurt for everyone to consider their role in the purveyance of that consciousness a little closer.
<br /><br />
put simply:ultimately the only thing that should be a deciding factor in radio play is if the dj likes your shit or not. trust who you hire.
<br /><br />
if the people consistently dont like what he plays hes by definition a bad dj. you should fire him. but he's the music guy. let him be that.
<br /><br />
*or she
<br /><br />
aight "rant" officially over. WHO WANTS SOME FART JOKES!</em></blockquote><br /><br /><a href="http://www.techdirt.com/articles/20121210/10051221336/el-p-to-radio-let-djs-be-djs-stop-thinking-yourselves-as-gatekeepers.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20121210/10051221336/el-p-to-radio-let-djs-be-djs-stop-thinking-yourselves-as-gatekeepers.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20121210/10051221336/el-p-to-radio-let-djs-be-djs-stop-thinking-yourselves-as-gatekeepers.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>because-you're-not,-anymore</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20121210/10051221336</wfw:commentRss>
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<pubDate>Fri, 14 Dec 2012 19:39:00 PST</pubDate>
<title>The Complex Joys Of Music In The Age Of Digital Abundance</title>
<dc:creator>Glyn Moody</dc:creator>
<link>http://www.techdirt.com/articles/20121122/11205321125/complex-joys-music-age-digital-abundance.shtml</link>
<guid>http://www.techdirt.com/articles/20121122/11205321125/complex-joys-music-age-digital-abundance.shtml</guid>
<description><![CDATA[ A recent issue of The New Yorker had a fine essay by Mike Spies about <a href="http://www.newyorker.com/online/blogs/culture/2012/11/spotify-and-its-discontents.html">the joys of discovering and listening to music</a>.  But its overall tone is rather melancholic:

<i><blockquote>We seem to have created an environment in which wonderful music, newly discovered, is difficult to treasure. For treasures, as the fugitive salesman in the flea market was implying, are hard to come by -- you have to work to find them. And the function of fugitive salesmen is to slow the endless deluge, drawing our attention to one album at a time, creating demand not for what we need to survive but for what we yearn for. Because how else can you form a relationship with a record when you're cursed with the knowledge that, just an easy click away, there might be something better, something crucial and cataclysmic? The tyranny of selection is the opposite of freedom. And the more you click, the more you enhance the disposability of your endeavor.</blockquote></i>

Of course, this is a common complaint -- that digital abundance is somehow devaluing our experience of art.  It's a close cousin of the idea put about by the copyright industries that the lower the price of something, the less you value it (neatly confounding two quite distinct concepts -- "price" and "value".)  But the post by Spies rises above that, partly because it is so poetic in its phrasing, and partly because it gets down to specifics.  Here, for example, is his description of some of the pleasures enjoyed during that now-lost era of analog scarcity (the music was already digital, but the packaging wasn't):

<i><blockquote>When I returned to my dorm, I unwrapped the cellophane and turned the album over in my hands, flirting with it, searching for clues about what lay within. The cover image of the singer seemed to tell the story of a man who, perhaps in order to avoid great pain, had entered oblivion, but done so in style, with a cool cigarette sticking straight out of his mouth. The question was: How did he get to oblivion, and why did he seek it out in the first place? The answer, needless to say, was the CD itself: the music, the sonic promise.</blockquote></i>

There seem to be two distinct elements here.  The first is "clues" for the music: that cover image of the singer.  In the pre-Internet days, such images had considerable power because they were one of the main ways musicians were visualized for the public.  Today, a simple image search will bring up hundreds, if not thousands of images of musicians engaged in lots of activities, both cool and uncool.  But for anyone who was truly "searching for clues" about the music, even the uncool images might, in their authentic awkwardness, offer vital hints.
<p>
The other element, of course, is the music itself, and its "sonic promise".  But again, to understand any given piece of music, is it not useful to have access to the pieces written before and after it by the artist, the pieces that influenced it, and those that it influenced? Or what about all the pieces written in that year, or for the same musicians, or played at the same venue?  Those complex cuts of the totality of recorded music -- the rich and surprising playlists that people make and share -- are something that the Internet with its digital abundance is uniquely well-placed to supply in a way that CDs never could.  Isn't that multidimensional richness something to be welcomed, not feared?
</p><p>
On the one hand, Spies seems to be saying that today it's too easy, that we don't do enough to earn the pleasure of our music by spending time as we did in the old days:

<i><blockquote>if I was going to buy a CD, back when I bought them, I had to eke out some time, and even pray for a little luck, as I could spend hours in a dimly lit store, and leave with nothing. So I had to make a conscious decision that I was going to take my chances.</blockquote></i>

But on the other, he seems to be lamenting the fact that it's just too hard, that we can never know whether we have found what we are looking for, because there is always more to explore:

<i><blockquote>how else can you form a relationship with a record when you're cursed with the knowledge that, just an easy click away, there might be something better, something crucial and cataclysmic?</blockquote></i>

Perhaps he just needs to recognize that, as in so many domains, the shift from analog scarcity to digital abundance brings with it a need to change our own ways of thinking and listening.  Now, the difficulty of finding music that we like -- the hours spent bent over racks of CDs in that "dimly lit store" -- has become a challenge that is physically trivial, but mentally far more demanding because it is unconstrained and almost limitless in its extent.  It's no longer about arriving at that definitive record that is "crucial and cataclysmic", but more about enjoying the journey through, and connections between, entire sequences of wonderful musical performances.
</p><p>
I suspect that the generation now growing up with digital abundance will have no difficulty forming their own deep and important emotional bonds with collections of music that they have discovered not through a slow process of seeking and finding in the physical world, but by constant, high-velocity adventures through an equally valid digital space.
</p><p>
Follow me @glynmoody on <a href="http://twitter.com/glynmoody">Twitter</a> or <a href="http://identi.ca/glynmoody">identi.ca</a>, and on <a href="https://plus.google.com/100647702320088380533">Google+</a></p><br /><br /><a href="http://www.techdirt.com/articles/20121122/11205321125/complex-joys-music-age-digital-abundance.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20121122/11205321125/complex-joys-music-age-digital-abundance.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20121122/11205321125/complex-joys-music-age-digital-abundance.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>times-they-are-a-changin'</slash:department>
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<pubDate>Thu, 13 Dec 2012 00:07:55 PST</pubDate>
<title>People Realizing That Other Occupations Can Learn From Music Success Stories</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/casestudies/articles/20121205/23530421253/people-realizing-that-other-occupations-can-learn-music-success-stories.shtml</link>
<guid>http://www.techdirt.com/blog/casestudies/articles/20121205/23530421253/people-realizing-that-other-occupations-can-learn-music-success-stories.shtml</guid>
<description><![CDATA[ For all the talk about how difficult it is for musicians to make a living today, and how there are all sorts of challenges, it's quite interesting to see that other people in other professions are increasingly looking to the growing number of <a href="http://www.techdirt.com/articles/20091119/1634117011/future-music-business-models-those-who-are-already-there.shtml">success stories</a> to see what they can learn.  Music manager Emily White recently alerted us to the fact that she's taking some of the lessons learned working with artists like Amanda Palmer, and applying them elsewhere as well.  For example, Olympic gold medalist swimmer Anthony Ervin recently began a "comeback" attempt, and needed to find support to go "on tour," competing for the US on the World Cup circuit.  Apparently, expenses for such a trip are entirely on the athlete.  So Ervin started doing what artists often do:  <a href="http://www.usaswimming.org/ViewNewsArticle.aspx?TabId=0&#038;Alias=Rainbow&#038;Lang=en&#038;ItemId=4803&#038;mid=12660" target="_blank">connecting with fans and giving them a reason to buy</a>:
<blockquote><i>
But what&#8217;s more spectacular than the times, places, and races is Anthony&#8217;s unusual and creative marketing campaign and his unorthodox methods for connecting with fans and formulating his own brand. It&#8217;s something we&#8217;ve never really seen before. And as some of the post-Olympic sponsorship money begins to dry out for elite swimmers, it could be a precedent going forward -- a way to generate and self-brand and connect with fans, a way to keep going. 
</i></blockquote>
A big part of this was an <a href="http://www.indiegogo.com/anthonyervin2012" target="_blank">IndieGoGo campaign</a> last fall, which raised $12,704, by really reaching out to his fans.  And, as with typical crowdfunding campaigns, he's let some of his unique personality come through with the campaign and the possible awards.  Since he's well known for dabbling in music as well, he offered to write people their own songs.  And, of course, he also has offered up private swimming lessons for big donors as well.
<blockquote><i>
What struck me about this is an entirely new way for swimmers to fund some of the more expensive swim tours out there. By providing creative incentives &#8211; like singing a song, or making a phone call &#8211; Anthony is literally giving back to the swim community dependent on the amount of support he gets. Also, throughout the Tour, Anthony&#8217;s journey is being updated. So not only can you donate, and then receive an autographed postcard, but you can also feel like you&#8217;re on the World Cup tour with him. Check out his Tweets, or his website. He&#8217;s uploading pictures of him talking to kids in Sweden, traveling around Russia. 
<br /><br />
It&#8217;s almost like Anthony has embraced some of the rock band roots he has and created his own &#8220;rock tour&#8221; of Europe, partially funded by his very own street team of loyal supporters. What&#8217;s amazing about all this is that bands have been doing this for years. Start-ups, films, photographers, long-distance athletes, too. And now, we&#8217;re seeing Olympic swimmers take to the Internet, to help fund their travels and excursions and training. 
</i></blockquote>
Of course, some may argue that there's nothing "new" here.  And, to some extent, that's absolutely true.  Lots of people are doing crowdfunding for different things these days.  But it's still neat to see that these kinds of ideas are permeating into different areas where they haven't been used before, and that people elsewhere are taking their cue from some of the success stories in the music business.  At the very least, it suggests that, perhaps, those embracing these new music business models aren't just on the right path, they're blazing a nice trail for tons of other areas as well.<br /><br /><a href="http://www.techdirt.com/blog/casestudies/articles/20121205/23530421253/people-realizing-that-other-occupations-can-learn-music-success-stories.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/casestudies/articles/20121205/23530421253/people-realizing-that-other-occupations-can-learn-music-success-stories.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/casestudies/articles/20121205/23530421253/people-realizing-that-other-occupations-can-learn-music-success-stories.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>a-swimmer?</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20121205/23530421253</wfw:commentRss>
</item>
<item>
<pubDate>Thu, 6 Dec 2012 17:00:00 PST</pubDate>
<title>DailyDirt: Stop Filling Your Brain With Nonsense</title>
<dc:creator>Michael Ho</dc:creator>
<link>http://www.techdirt.com/articles/20101022/04184311538/dailydirt-stop-filling-your-brain-with-nonsense.shtml</link>
<guid>http://www.techdirt.com/articles/20101022/04184311538/dailydirt-stop-filling-your-brain-with-nonsense.shtml</guid>
<description><![CDATA[ You are what you eat, and your brain reflects what you've taught it. It shouldn't be too surprising that our brains change based on what we do with them. There's some interesting science behind why you never forget how to ride a bike, and here are a few more examples of lessons our brains seem to keep forever.

<ul>

<li> <a title="http://www.nytimes.com/2012/03/18/opinion/sunday/the-benefits-of-bilingualism.html?_r=0" href="http://nyti.ms/THYbm8">Being bilingual was once considered to be detrimental to cognitive processes, but more studies are finding evidence that bilingualism can enhance certain mental skills.</a> Bilingual people appear to be better than monolinguals at monitoring their environment more keenly, noticing changes that monolinguals miss out on. [<a href="http://www.nytimes.com/2012/03/18/opinion/sunday/the-benefits-of-bilingualism.html?_r=0">url</a>]</li>

<li> <a title="http://well.blogs.nytimes.com/2012/09/10/early-music-lessons-have-longtime-benefits/" href="http://nyti.ms/TI2oXf">Children who learn how to play a musical instrument have detectable differences how in their brain responds when listening to complex sounds (even years after they've stopped playing).</a> Some researchers claim to be able to tell whether a person has ever played an instrument only by looking at his/her brain scans. [<a href="http://well.blogs.nytimes.com/2012/09/10/early-music-lessons-have-longtime-benefits/">url</a>]</li>

<li> <a title="http://www.ucl.ac.uk/news/news-articles/1208/15082012-Karate-experts-brains-increase-punching-power-Husain" href="http://bit.ly/Sw6WAN">Karate experts can deliver blows with much greater force than might be expected by simply measuring their muscle strength, and measured brain structure differences seem to explain that years of training help the cerebellum to coordinate muscle movements and deliver more forceful punches.</a> Now let's see some brain scans for gamers who are good at QWOP.... [<a href="http://www.ucl.ac.uk/news/news-articles/1208/15082012-Karate-experts-brains-increase-punching-power-Husain">url</a>]</li>

</ul>

If you'd like to read more awesome and interesting stuff, check out this unrelated (but not entirely random!) <a title="http://www.stumbleupon.com/to/stumble/stumblethru:www.techdirt.com" href="http://bit.ly/fagV8c">Techdirt post</a>.<br /><br /><a href="http://www.techdirt.com/articles/20101022/04184311538/dailydirt-stop-filling-your-brain-with-nonsense.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20101022/04184311538/dailydirt-stop-filling-your-brain-with-nonsense.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20101022/04184311538/dailydirt-stop-filling-your-brain-with-nonsense.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>urls-we-dig-up</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20101022/04184311538</wfw:commentRss>
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<item>
<pubDate>Mon, 19 Nov 2012 09:53:45 PST</pubDate>
<title>AC/DC And Kid Rock Finally Realize That Selling Tracks Online Is Probably A Good Idea</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/casestudies/articles/20121119/02552821089/acdc-kid-rock-finally-realize-that-selling-tracks-online-is-probably-good-idea.shtml</link>
<guid>http://www.techdirt.com/blog/casestudies/articles/20121119/02552821089/acdc-kid-rock-finally-realize-that-selling-tracks-online-is-probably-good-idea.shtml</guid>
<description><![CDATA[ A few years ago, people always referred to the Beatles as the biggest holdouts in terms of releasing their music for sale as MP3s online (mainly iTunes).  However, the Beatles finally came around in November of 2010.  After that, people started putting together lists of who was left and <a href="http://music-mix.ew.com/2010/11/16/beatles-itunes-holdouts/" target="_blank">AC/DC and Kid Rock</a> seemed to top most of those lists.  So it seems noteworthy that both have just caved.  Kid Rock's new album <a href="http://www.billboard.com/news/kid-rock-finally-hits-itunes-with-rebel-1007995032.story" target="_blank">is available on iTunes</a>, with someone saying that he finally realized that he could "no longer ignore how much money he was leaving on the table."  And, the latest is that <a href="http://www.macrumors.com/2012/11/19/acdc-finally-available-on-itunes/" target="_blank">AC/DC has come around as well</a>.  Of course, AC/DC wasn't just not selling downloadable tracks, but they seemed philosophically opposed to the whole concept based on <a href="http://musically.com/2012/11/19/acdc-end-their-itunes-holdout/" target="_blank">some of their quotes</a>:
<blockquote><i>
<p>"I know the Beatles have changed but we're going to carry on like that," guitarist Angus Young <a href="http://news.sky.com/story/854279/rock-solid-ac-dc-stand-firm-on-downloads" target="_blank">told Sky News</a> in May 2011, after the Beatles had ended their own iTunes holdout. "For us it's the best way. We are a band who started off with albums and that's how we've always been."</p>
<p>Back in October 2008, the band were even more hardline. "Maybe I'm just being old-fashioned, but this iTunes, God bless 'em, it's going to kill music if they're not careful," singer Brian Johnson <a href="http://www.reuters.com/article/2008/10/13/us-acdc-tech-idUSTRE49C4BH20081013?pageNumber=1&#038;virtualBrandChannel=0" target="_blank">told Reuters</a>.</p>
<p>"It's a...monster, this thing.&nbsp;It just worries me. And I'm sure they're just doing it all in the interest of making as much...cash as possible. Let's put it this way, it's certainly not for the... love, let's get that out of the way, right away."</p>
</i></blockquote>
Yup.  But apparently they're finally realizing that maybe it helps to go where your fans are.  A bit late.
<br /><br />
Of course, looking at those quotes, they sound mighty familiar to what we're hearing these days about other services like Pandora and Spotify.  Why is it that there's always a contingent of musicians who so want to hate the services that actually deliver a legal product to fans?<br /><br /><a href="http://www.techdirt.com/blog/casestudies/articles/20121119/02552821089/acdc-kid-rock-finally-realize-that-selling-tracks-online-is-probably-good-idea.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/casestudies/articles/20121119/02552821089/acdc-kid-rock-finally-realize-that-selling-tracks-online-is-probably-good-idea.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/casestudies/articles/20121119/02552821089/acdc-kid-rock-finally-realize-that-selling-tracks-online-is-probably-good-idea.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>well-look-at-that</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20121119/02552821089</wfw:commentRss>
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<item>
<pubDate>Thu, 15 Nov 2012 11:30:00 PST</pubDate>
<title>RIAA Prefers Customers Who Buy A Little To Pirates Who Buy A Lot</title>
<dc:creator>Joe Karaganis</dc:creator>
<link>http://www.techdirt.com/articles/20121114/07180721044/riaa-prefers-customers-who-buy-little-to-pirates-who-buy-lot.shtml</link>
<guid>http://www.techdirt.com/articles/20121114/07180721044/riaa-prefers-customers-who-buy-little-to-pirates-who-buy-lot.shtml</guid>
<description><![CDATA[ Some weeks ago, we published a lengthy blog post called <a href="http://piracy.americanassembly.org/where-do-music-collections-come-from/" target="_blank">Where do Music Collections Come From?</a> which discussed findings from our Copy Culture survey of 1000 Germans and 2300 Americans.
<br /><br />
Some of the data demonstrated that P2P file sharers (who own digital music files) buy more music than their non-P2P using peers (who also own digital music files). Here's the chart again:
<center>
<a href="http://imgur.com/DVvSc"><img src="http://i.imgur.com/DVvSc.png" width=560 /></a>
</center>
To me, this was a fairly innocuous finding, well in line with <a href="http://www.laquadrature.net/wiki/Studies_on_file_sharing#The_.22pirates.22_are_better_consumers_of_.22legal.22_culture" target="_blank">other studies</a>. For my money, the more important findings were that personal sharing 'between friends' is about as prevalent and as significant in music acquisition as 'downloading for free', and that together they are outweighed by legal acquisition.
<br /><br />
But the public spoke and the P2P finding went viral: the biggest pirates are the best customers. Headlines like this generated pushback from record industry groups RIAA and IFPI--mostly centered around the work of NPD, their survey firm in the US.  The exchange, I think, is an interesting window onto the state of the empirical debate around file sharing.
<br /><br />
At the risk of boring you, here&rsquo;s the chronology:
<br /><br />
<b>Oct.15</b>: We argue that P2P users are the biggest buyers of recorded music. The story jumps from <a href="http://torrentfreak.com/file-sharers-buy-30-more-music-than-non-p2p-peers-121015/" style="color: rgb(17, 85, 204);" target="_blank">TorrentFreak</a> to <a href="http://gizmodo.com/5952083/file+sharers-buy-30-percent-more-music-than-non+sharers" target="_blank">Gizmodo</a> to many many other sites.
<br /><br />
<b>Oct.16</b>: Russ Crupnick, Senior VP at NPD tells <a href="http://www.nbcnews.com/technology/technolog/file-sharers-buy-more-music-non-file-sharers-says-study-1C6496069" target="_blank">NBC News' tech blog</a>
<blockquote>
We hear this argument all the time and it makes no sense.... Peer-to-peer users tend to be younger and more Internet-savvy, so the likelihood that would be buying digital files makes perfect sense. But you can't compare that to the entire population.
</blockquote>
<b>Oct. 17:</b><a href="http://piracy.americanassembly.org/npd-confidential/" target="_blank">We point out</a> that we <b>didn't</b> compare P2P users to the general population, but to digital music file owners (50% of the US population; 42% in Germany). We acknowledge that our labeling was a little ambiguous on this point, so we fixed it. We noted that "if NPD has data that suggests otherwise, perhaps they could share it."
<br /><br />
<b>Oct. 17</b>: <a href="http://www.ifpi.org/content/section_news/20121017.html" target="_blank">IFPI weighs in</a>, arguing that NPD says that most P2P users are moochers, even if a few skew the average by buying a lot:
<blockquote>
P2P users spent US$42 per year on music on average, compared with US$76 among those who paid to download and US$126 among those that paid to subscribe to a music service. The overall impact of P2P use on music purchasing is negative, despite a small proportion of P2P users spending a lot on music.
</blockquote>
<b>Oct.18</b>: We say, OK IFPI, that's not super clear. Those categories don't seem mutually exclusive. But <a href="http://piracy.americanassembly.org/npd-confidential-ii-die-substitution-studies-die/" target="_blank">we take your general point so let's break down the P2P users</a> with digital music collections. Here's what our data says:
<ul>
<li>16% bought no music files.</li>
<li>Another 9% said that 10% or less of their music file collections were purchased.</li>
<li>The median music file collection, among P2P users, is around 50% purchased.</li>
<li>And 15% said that <i>their whole collection was purchased</i> (suggesting that they used P2P for other purposes).</li>
</ul>
It&rsquo;s a diverse group, but not moocher-dominated. We stand by our claim.
<br /><br />
<b>Oct.19:</b>Then Russ Crupnick at NPD <a href="https://www.npdgroupblog.com/driving-under-the-influence/" target="_blank">writes a piece</a> that accuses us of publishing while drunk and also lacking a license to make proper sense of data (not joking about this). He repeats that you can't compare P2P users with the general public, and then notes that we're <b>right</b> about P2P users&mdash;but also wrong because it's dumb to be right about this.
<blockquote>
P2P music downloaders do indeed buy more music than non-users. We&rsquo;ve known that for about 10 years. It&rsquo;s a dumb, illogical and irritating argument.
</blockquote>
He then brings out his presumably non-drunk, licensed findings and, well, there are a couple things to say. 
<center>
<a href="http://imgur.com/axnHc"><img src="http://i.imgur.com/axnHc.jpg" width=560 /></a>
</center>
First, <a href="http://www.michaelgeist.ca/content/view/6699/125/" target="_blank">he gets his math wrong</a> by including the subtotal in the grand total (h/t Michael Geist).  Possibly this is advanced licensed math of some sort.  I wouldn't know.
 <br /><br />
Second, when corrected, the numbers are pretty similar to ours! P2P users do buy more legal music than non-P2P using music buyers. And if you add in concert and merchandise, they spend <i>quite a bit more</i> on music.
<br /><br />
As near as I can tell, Mr. Crupnick has no actual disagreement with us on the P2P findings. That&rsquo;s just smoke and mirrors. Rather, he want to make two other claims:
<br /><br />
First, that even though P2P users buy more than others music buyers, they buy less than they used to.
<blockquote>
The average P2P user spent $90 per capita on music in 2004- now they spend $42 (CDs, downloads, subscriptions). This was during the same period when the number of files illegally downloaded per capita was rising.
</blockquote>
Our spending numbers would look higher, but we agree with the basic story. Here&rsquo;s how we put it.
<blockquote>
[P2P users] are better digital consumers. But is also clear that this investment has fallen vis &agrave; vis large CD-based collections. The survey offers ample evidence of this shift in the way music aficionados relate to music&ndash;no longer organized around large CD collections or measured in terms of individually priced songs or albums, but rather defined by a mix of legal and illegal strategies for accessing everything now.
</blockquote>
Then he gets to what he <b>really</b> wants to talk about:
<blockquote>
Celebrating P2P users for their contribution belies the fact that the paid component of the music that they acquire, aka their acquisition mix, is 50% less than the average music consumer.
</blockquote>
And so the moral order is restored.  Or is it?  On any normal reading of the post, this makes no sense: P2P users can't simultaneously spend more and 50% less than other music buyers.   (Admittedly, I've had a few drinks and should probably leave this to the metaphysicians at NPD.)
<br /><br />
But I'm willing to go the extra mile and assume that Mr. Crupnick is just being unclear, rather than contradictory.   Maybe the "paid component" refers to the <i>percentage</i> of overall collections, not to the annual "spend" on music.  This would have the virtue of making the statement true, in the self-evident sense that P2P users acquire more music than they buy. In our formulation above: the median music file collection, among P2P users, is around 50% purchased.
<br /><br />
But it wouldn't make the statement relevant. At this stage of the game, knowing who supports the music ecosystem and what their expectations are matters a great deal. The fact that P2P users pirate, on the other hand, only matters if your main strategy for increasing sales is enforcement.  Boiled down, Mr. Crupnick's point is that it's more important to stigmatize the pirate than understand the customer.
<br /><br />
<b>Nov. 12</b>: The RIAA's Joshua Friedlander steps in <a href="http://www.riaa.com/blog.php?content_selector=riaa-news-blog&#038;blog_selector=How-To-Evaluate-Illegal-Downloading-Metrics&#038;news_month_filter=11&#038;news_year_filter=2012" target="_blank">to endorse that view</a>:
<blockquote>
In reality, the comparison is unfair &ndash; what it&rsquo;s comparing is people who are interested in music with people who might not be interested at all. Of course people interested in music buy more. But as research firm the NPD Group (which has been studying these issues for a decade) points out <a href="https://www.npdgroupblog.com/driving-under-the-influence/" target="_blank" title="https://www.npdgroupblog.com/driving-under-the-influence/">here</a>, this data is neither new, nor illustrative. In their words, &ldquo;Celebrating P2P users for their contribution belies the fact that the paid component of the music that they acquire, aka their acquisition mix, is 50% less than the average music consumer. Yes, that&rsquo;s half the average.&rdquo;
</blockquote>
For what it&rsquo;s worth, I think piracy does play a role in declining purchases of recorded music, but I also think there are so many forms of disruption in the market that it&rsquo;s impossible to isolate that impact. Here&rsquo;s how we put it in a post called&nbsp;<a href="http://piracy.americanassembly.org/die-substitution-studies-die-ii-well-ok-maybe-some-should-live/" target="_blank">Die Substitution Studies, Die II: Well, Maybe Some Should Live</a>.
<blockquote>
We&rsquo;ve argued that the media ecology <a href="http://piracy.americanassembly.org/npd-confidential-ii-die-substitution-studies-die/" target="_blank">has become so complicated that nobody has a handle on what substitutes for what</a>. Does a pirated MP3 file substitute for a $1 purchased file, a $12 CD, some number of listens on YouTube or Spotify or radio? Does Spotify substitute for MP3 purchases? Or YouTube listens? Should we take stagnant discretionary income into account, and rising costs for other media services, like cable TV, Internet access, and data plans. Do national differences matter&ndash;including major differences in digital markets and services (In Germany, CD sales represent over 80% of the market; in the UK and US, under 50%).... Which of these factors get priority? How do we model their interaction?
</blockquote>
Increasingly, we don't think it matters.  For younger music fans, the primary connection to music no longer passes through carefully curated CD (or MP3 ) collections but through the universal jukebox approximated by overlapping services--iTunes, YouTube, Spotify, The Pirate Bay, and your friends' collections.  The total spend is shaped not just by the availability of pirated music, but also by the close complementarity of other free and cheap music services and by the <a href="http://piracy.americanassembly.org/die-substitution-studies-die-ii-well-ok-maybe-some-should-live/" target="_blank">greater competition for discretionary income and attention from other media</a>--games, DVDs, apps, data plans, concerts, and so on.
<br /><br />
So what&rsquo;s at stake in all the misdirection and cheap shots? In a generous mood, I'd say carelessness. In a less generous mood, I'd say it sounds like resentment that he has to debate this stuff at all. Ten years ago, he didn't have to. Send out the press release, watch it get picked it up, and call it a day. NPD and RIAA simply owned the discussion. Now they have to nitpick with academics.
<br /><br />
Companies like NPD make money not just by surveying people about their habits, but also by ensuring that the data that they make public leads toward conclusions their clients like. This is the noxious side of an advocacy-driven research culture. And for many research firms, it produces occasional schizophrenic moments: the social scientist warring with the company man. Maybe that's what we're seeing here. The P2P results may have been obvious and "known" for years but I can find no trace that NPD thought them worth mention before this exchange flushed them into the open. NPD has tons of data and could make a huge contribution to public understanding of these issues, but that's not their job. Dissonant findings <a href="http://torrentfreak.com/riaa-online-music-piracy-pales-in-comparison-to-offline-swapping-120726/" target="_blank">stay confidential</a>.
<br /><br />
Which is too bad, because in the end, Mr. Crupnick arrives at many of the same conclusions we do. From <a href="http://www.thenewsherald.com/articles/2012/02/17/news/doc4f3a6d57dd6ab814156053.txt" target="_blank">earlier this year</a>:
<blockquote>
"There are always going to be those who look for bootlegs and songs you can't find on sites like Spotify and Rdio, and there will always be people who see illegal downloading as a sort of game, but I think that number will just get smaller and smaller as other options become more convenient with all your devices," says Russ Crupnick, senior entertainment industry analyst for NPD.
<br /><br />
The reason for this, as Crupnick and others note, isn't because of potential legislation that mirrors SOPA so much as the growing number of cheap, legal alternatives to illegal downloading combined with the decline of many well-known file-sharing sites.
</blockquote>
So what's he defending? Not different data or even significantly different findings, but just his client's failed monopoly on interpretation. But that drunk horse has left the barn.<br /><br /><a href="http://www.techdirt.com/articles/20121114/07180721044/riaa-prefers-customers-who-buy-little-to-pirates-who-buy-lot.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20121114/07180721044/riaa-prefers-customers-who-buy-little-to-pirates-who-buy-lot.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20121114/07180721044/riaa-prefers-customers-who-buy-little-to-pirates-who-buy-lot.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>less-is-more</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20121114/07180721044</wfw:commentRss>
</item>
<item>
<pubDate>Mon, 12 Nov 2012 07:20:49 PST</pubDate>
<title>Draconian Downloading Law In Japan Goes Into Effect... Music Sales Drop</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20121109/13423720996/draconian-downloading-law-japan-goes-into-effect-music-sales-drop.shtml</link>
<guid>http://www.techdirt.com/articles/20121109/13423720996/draconian-downloading-law-japan-goes-into-effect-music-sales-drop.shtml</guid>
<description><![CDATA[ For years, we've pointed out that some in the music industry get so obsessed with "stopping piracy" that they miss the fact that their main job should be to <i>increase revenue</i>. They make the huge mistake of assuming that the two things are the same -- and that "stopping piracy" automatically leads to "increased revenue."  Yet, almost every time that issue is explored empirically (over time), it doesn't seem to hold up.  The latest example was sent in by Techdirt reader <a href="http://www.techdirt.com/user/edinjapan">edinjapan</a>, and it concerns the <a href="http://www.techdirt.com/articles/20120625/03200019461/japan-criminalizes-unauthorized-downloads-making-dvd-backups-maybe-watching-youtube.shtml">new draconian anti-piracy laws</a> that recently went into effect there.  If you believed the basic theory behind this law, this would mean that greater enforcement by police would mean less piracy... and a massive influx in revenue.
<br /><br />
Except, the reality is that <a href="http://www.japantoday.com/category/national/view/a-month-after-download-law-consumers-spending-less-on-music-survey?utm_campaign=jt_newsletter&#038;utm_medium=email&#038;utm_source=jt_newsletter_2012-11-07_AM" target="_blank">consumers are spending less on music</a> than they were before the bill became law.  The article actually posits that the government has made some people so fearful of being arrested that they <i>won't do any downloading from legitimate sources</i> any more -- just in case it's tainted.  So even if they can cut out piracy (doubtful) there's little evidence to suggest much increase in commerce as a result.<br /><br /><a href="http://www.techdirt.com/articles/20121109/13423720996/draconian-downloading-law-japan-goes-into-effect-music-sales-drop.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20121109/13423720996/draconian-downloading-law-japan-goes-into-effect-music-sales-drop.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20121109/13423720996/draconian-downloading-law-japan-goes-into-effect-music-sales-drop.shtml?op=sharethis">Email This Story</a><br />
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<slash:department>what-a-non-surprise</slash:department>
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<pubDate>Fri, 9 Nov 2012 05:35:55 PST</pubDate>
<title>GEMA Gets Bailed Out By Germany's Parliament; Allowed To Proceed With Venue-Killing Rate Hikes</title>
<dc:creator>Tim Cushing</dc:creator>
<link>http://www.techdirt.com/articles/20121106/21382720956/gema-gets-bailed-out-germanys-parliament-allowed-to-proceed-with-venue-killing-rate-hikes.shtml</link>
<guid>http://www.techdirt.com/articles/20121106/21382720956/gema-gets-bailed-out-germanys-parliament-allowed-to-proceed-with-venue-killing-rate-hikes.shtml</guid>
<description><![CDATA[ The threat posed to Germany&#39;s underground club scene by all-around <a href="http://www.techdirt.com/blog/?company=gema" target="_blank">IP thug GEMA</a> is no longer just a threat. Back in July, GEMA decided to "streamline" its convoluted fee structure. Naturally, it decided to smooth things over in a upward motion, raising the fees charged to these clubs <a href="http://www.techdirt.com/articles/20120717/21191419737/gema-hikes-venue-performance-royalties-500-threatens-germanys-underground-club-scene.shtml" target="_blank">by up to 1,400%</a>. This sparked protests against GEMA&#39;s tactics and a petition with 60,000 signatures was brought to the Deutsches Bundestag (Germany&#39;s parliament). Unfortunately, the Deutsches Bundestag punted, <a href="http://www.residentadvisor.net/news.aspx?id=18149" target="_blank">suggesting those unhappy with the new fee structure negotiate directly with GEMA</a>. [However you spell "LOL" in German goes here.]<br />
<br />
The petition itself deployed an interesting tactic, targeting the legality of the "GEMA presumption."
<blockquote>
<i>The petition, which began circulating in August, specifically protested the so-called "GEMA presumption," i.e. GEMA&#39;s method of deciding tariffs for clubs and festivals based on the assumption that they own rights to 100% of the music being played there. The reasoning behind this is that it would be too difficult to sort out which tracks were or weren&#39;t written by GEMA members. This method is part of what allows GEMA to decide their tariffs based purely on the amount of space in a venue and the duration of its events, without necessarily knowing what music was played.</i></blockquote>
Not much of a "method," is it? It&#39;s exactly what the protestors call it: "presumption." Rather than make any attempt to even make a <i>ballpark</i> guess at the percentage of music GEMA might actually be able to collect on, GEMA has bullied its way to a supremely privileged position that allows it to claim tariffs on 100% of any music played in nearly any venue. The duration of the events works against the underground clubs as well, as their extended hours drastically increase the fees GEMA collects.<br />
<br />
The audacity of this claim (and the unwillingness to do any legwork) is astounding. Whatever hold GEMA has over the government, and by extension, Germany&#39;s music consumption, far surpasses the power of other PROs, labels and IP groups around the world.<br />
<br />
Resident Advisor points out that this isn&#39;t the first time GEMA&#39;s "presumption" has been challenged.
<blockquote>
<i>The GEMA presumption has been contested before. One study by Berlin&#39;s Club Commission sampled everything that was played at Berlin clubs like Watergate and Weekend over one weekend, and found that as many as 35% of the records played were unknown to GEMA...</i></blockquote>
While GEMA could still claim that its artists provide a larger share of the records played in these clubs, it&#39;s still a long walk from 65% to 100%, that latter percentage being what determines the fees assessed. Unfortunately, the Bundestag sided with GEMA in this earlier action, stating that any alternative would be "too cumbersome" for the PRO to utilize for its collection efforts.<br />
<br />
This second concession to GEMA by the Bundestag effectively allows GEMA to set rates with impunity and frees it from having to determine actual music usage. In addition to granting GEMA even more power, it likely dooms several iconic Berlin clubs to extinction, thanks to rate increases that reflect only GEMA&#39;s self-serving "streamlining" rather than the actual music played or the clubs&#39; actual income.<br />
<br />
Organizations like GEMA are supposedly "protecting artists" by imposing these fees. There&#39;s some "protection" going on here, but it&#39;s got nothing to do with art.<br /><br /><a href="http://www.techdirt.com/articles/20121106/21382720956/gema-gets-bailed-out-germanys-parliament-allowed-to-proceed-with-venue-killing-rate-hikes.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20121106/21382720956/gema-gets-bailed-out-germanys-parliament-allowed-to-proceed-with-venue-killing-rate-hikes.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20121106/21382720956/gema-gets-bailed-out-germanys-parliament-allowed-to-proceed-with-venue-killing-rate-hikes.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>your-shakedown-is-GO!</slash:department>
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